Trailer fees are first to go – By Jonathan Chevreau, Financial Post

Our Comment by J. David LewisThis is a very interesting article about financial services fiduciary standards in several developed nations, including United Kingdom, Australia, Canada and the U.S.  We can learn from them.  I wonder whether our House of Representatives and Senate were exposed to these ideas as they debated financial services reform.   Fiduciary implementation regulations will be written by the Securities and Exchange Commission.  It seems the S.E.C. should be more likely to pay attention than Congress to these issues in other countries.  Whether they do is another matter.  We have come a long way toward improving consumer protection.  At Resource Advisory Services, we will still be concern until we are comfortable with the final rules that are written.

By Jonathan Chevreau, Financial Post

“North America is behind the curve, but the related concept of “fiduciary duty” — putting the best interests of clients first — is moving front-and-centre in the United States.

A week ago, U.S. legislators agreed to language that provides the Securities and Exchange Commission the authority to impose fiduciary standards of duty on brokers rendering investment advice. That means their customers interests take precedence over their own.

If global trends prevail, embedded compensation, central to how most mutual funds are sold in Canada, may be on borrowed time. Consumer advocates have long denounced fund trailing commissions or trailers for providing skewed incentives for salespeople to favour funds that pay them — over those that dont, regardless of performance.”

Read the full article via Trailer fees are first to go.

J. David Lewis founded Resource Advisory Services in 1985.  National Association of Personal Financial Advisors (NAPFA) was formed only a few years before. Lewis became a NAPFA-Registered Financial Advisor in 1986.  He is a passionate advocate for fiduciary, fee-only financial planning and has been associated with financial services since childhood in a banking family.   Contact him using

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