The CFPB’s recent report reveals that more than 50 designations for financial advisers are out there, and many do not require training.
I know nothing about cars. Short of becoming educated about modern fuel-injection engines, I walk into service stations like a willfully ignorant lamb. It’s all a vast mystery, and I’m surprisingly OK with that. Thus far, it’s worked out well — my car runs. Case closed.
It’s much more difficult to gauge service on products that are more abstract than cars. Things such as 401(k)s, individual retirement accounts, taxable brokerage accounts and the universe of investment options therein can be confusing. Not only that, the people paid to service these accounts, financial advisers, may benefit from the confusion.
Last year, as the Securities and Exchange Commission was taking comments on the matter of a fiduciary standard for broker-dealers and other financial service professionals, the Consumer Federation of America conducted a survey which found that nearly all investors, 9 out of 10, believe brokers or advisers should put their clients’ interests ahead of their