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Anti-Fiduciary Propaganda from Financial Media

Near the bottom of this unmistakably biased article, author Diana Furchtgott Roth, a staunch republican who served as the chief economist of the U.S. Department of Labor in 2003 – 2005, among other roles in government, takes a backhanded jab at the fiduciary standard, making a discordant claim about the Department of Labor’s proposed rule to end commissioned-based financial advising. She explains the fiduciary standard as forcing advisors into a “best interest contract” between themselves and their client (as if putting the client’s best interest first is a bad thing). Diana goes on to explain that this will pressure investors to seek advisors who charge “up-front” fees (again, why are up front fees a bad thing? Are hidden fees better? Am I missing something here?). It’s disappointing, the broker industry marketing this type of uninformed fallacy to try to trick the common investor. As a common investor, it’s important to stay informed. Find out how the fiduciary standard protects you.

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