Stock prices in markets around the world fluctuated dramatically for the week ending August 27, 2015. On Monday, August 24, 2015 the Dow Jones Industrial Average fell 1,089 points— a larger loss than the “Flash Crash” in May 2010—before recovering to close down 588 points. Prices fell further on Tuesday before bouncing back on Wednesday, Thursday, and Friday. Although the S&P 500 and Dow Jones Industrial Average rose 0.9% and 1.1%, respectively, for the week, many investors found the dramatic day-to-day fluctuations unsettling.
When I began this series in March, I did so with an optimistic belief that a new fiduciary standard would soon become the law of the land.
After all, the debate over how to better protect investors from the rampant conflicts of interest in the financial services industry has been underway for years. In fact, I first wrote about the proposed changes in February of 2011 (The DOL Says No Advice Is Better Than "Schlocky" Advice).
“All advice should be in the best interest of the consumer. Bad financial advice is just wrong – period.”
That was the quote from Jo Ann Jenkins, CEO of AARP, which I used to close my most recent post highlighting the Department of Labor’s (DOL’s) new fiduciary proposal.
Here’s the scenario…
Patient: “Hi Doc, I came to see you today because I’m really not feeling well.”
Doc: “Tell me more about that.”
Patient: “I’m running a fever and coughing like crazy.”
This follow-up to "The Tyranny of Choice" details how the Advisors Access approach enabled two plan sponsors to enhance their plans, reduce their fiduciary liability, and lower costs.READ MORE »