Further Observations on Regulation Best Interest
Contributor Scott Simon argues that nothing has changed for the better as a result of Regulation Best Interest.
What I’ve described in this column over the years as the “Fiduciary Wars” continues unabated, with the latest battle being waged by the U.S. Securities and Exchange Commission when it issued Regulation Best Interest on June 5.
I’ve also pointed out more than once when discussing these wars that it is impossible to fit a square peg into a round hole. This irreconcilability refers to the nature of the two diametrically opposed business models--suitability-based and fiduciary-based--which prevail in the investment world of nonfiduciaries and fiduciaries, respectively.