Chicago Partner and Co-Chair of the Firm's Corporate and Transactional Department Michael Renetzky is quoted extensively regarding alleged incidents of fiduciary rule abuses raised by the Consumer Federation of America in a letter to the DOL, Securities and Exchange Commission and the Financial Industry Regulatory Authority.
Renetzky says, “My reaction to the fiduciary rule since the initial proposal is that it would have precisely this impact—to move clients from commission-based accounts to fee-based accounts, based on a theory that these accounts were “better” for clients.” Renetzky continues: “What the real challenge is, and there is risk in it, is to determine which fee structure is better for each client. And to the extent the DOL hurdles make it more difficult for brokers to use commission-based structures, than it pushes the industry in the direction for fee-based accounts.”
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