The Dual Reality

Financial Planning, September, 2007 by BOB VERES

Before long, in a response that is as predictable as the sun's rise, the lobbyists and attorneys of wirehouse firms are going to visit those Congressional representatives whose reelection coffers they so generously fill, and tell them a very sad story. They'll say that the SEC and the courts are unfairly requiring their brokers to put their customers' interests first. They'll say this reduces consumer "choice" by forcing them to close down all those brokerage accounts where money is managed-for a fee-without fiduciary responsibility.

In the mouths of these lobbyists, the argument will sound far more persuasive than you or I can imagine, and you will hear soft music in the background whenever they speak. But they'll have to tap dance around an inconvenient reality in the...

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