I had the opportunity some time back to be interviewed for an article about industry regulations that's just been published in Advisers magazine. I wanted to give you a little bit of background why this topic matters so much to us at Vizionary Wealth Management.
The "Fiduciary" Regulatory Battle
There's a regulatory battle going on within the financial planning community around this word fiduciary.
We've had many financial advisors who used to be registered with the SEC and licensed through FINRA give up their FINRA licenses so that they don't have to deal with the compliance burdens. The compliance hurdles associated with FINRA are pretty extreme.
They're pretty high hurdles that need to be crossed so they prefer to just be regulated by the SEC and act as fiduciaries.
How It Affects Your Investment Vehicles
Here's the problem. There are a whole host of investment vehicles that FINRA regulates and oversees as commission-based investment vehicles. They are exactly the same investment vehicle that a fiduciary would put your money into.
The problem is they actually function better and more profitably for you as a client if they're sold on a commission platform.
That's the reason here at Vizionary, we have continued to maintain dual licensure with both registration with the SEC and with FINRA. We need to have the flexibility to truly act in your best interest. We don't just want to pick the right investment vehicle, but we also want to pick the platform on which that vehicle is actually going to provide the superior return characteristics for you as the client.
To read more on the subject as well as a few of my own comments, take a look at the Advisors Magazine article. I hope you enjoy it. Have a great day. Have a great week.
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