Here is an interesting twist to the fiduciary rule saga: even a major supporter of the rule is asking for changes. The Investment Adviser Association wants the DOL to add a component of the rule which allows for a “safe harbor” for sales conversations. Such a measure would mean sales pitches are exempt from the fiduciary standard. Morningstar, an investment research firm, contends that the best interest contract should be taken out of the rule and replaced with automated third-party reviews of portfolios.
FINSUM: Interesting to hear that even supporters want changes. A safe harbor for pitches sounds like a good idea.
Source: Investment News