Brokerages believe higher costs, more complex rules, and overlapping regulations will be the results of a new, tighter fiduciary standard by the U.S. Department of Labor. As companies such as D.A. Davidson & Co. determine just how the new regulations will affect them, Executive Chairman Bill Johnstone said clients may face more hurdles in how they obtain investment and retirement advice.
In fact, middle-class savers are likely to suffer the most effects under the proposed new rule, he said.
Johnstone was among industry leaders who spoke recently with The Wall Street Journal about the proposed new fiduciary standard and the harm it could do to investors.
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