It’s black and white now
That word "fiduciary" that I have struggled so mightily to explain to clients over the years is now in the public lexicon and, I might add, very effectively contrasted by the President against the black and white language of “conflicted advice” and “hidden and backdoor fees.” This is language the average investor can understand.
A shift in the battleground
So the battleground has shifted for an industry that already has a troubled history. It remains to be seen how all of this work out, especially when there are so few details about what is in the proposal (We will not have these details until OMB finishes its review.). But one thing is clear. The President has very effectively communicated to the investing public the industry is working against its interests. As John Bogle sarcastically put it, "I didn't realize there were a lot of people who don't want to put their client's interests first."
A word of unsolicited advice to those fighting the rule
I wonder if the current industry moaning and wailing, and gnashing of the teeth works against it. Would it not it be better to wait for the details of the proposed rule before blasting away at it? And would it not be better, if only for cosmetic reasons, to express a willingness to work with the Labor Department to achieve a rule all can live with?