Hat tip Josh

Category: Investing, Video

Please use the comments to demonstrate your own ignorance, unfamiliarity with empirical data and lack of respect for scientific knowledge. Be sure to create straw men and argue against things I have neither said nor implied. If you could repeat previously discredited memes or steer the conversation into irrelevant, off topic discussions, it would be appreciated. Lastly, kindly forgo all civility in your discourse . . . you are, after all, anonymous.

4 Responses to “Brokers vs. Fiduciaries”

  1. JasRas says:

    This is in fact, true. However, because of lawyers, Know your Client rules, and the general fact that if you removed the financial advisors, most brokerages would be large law firms…what you have are brokerages acting more and more like fiduciaries because of the risk of *not* acting as such (arbitration, lawsuits, deep pockets).

    Some of the most egregious acts against the general public in the last 5years have occurred in the independent, RIA, fiduciary channel. In the end, there’s no recourse for the horrific things that have been done to the public here because there was no larger entity behind the offender.

    Should brokerages become fiduciaries? I argue they are already, but people are simply too lazy to read the stuff given to them…

    Oh, and in the video, let’s not forget that some dietitians develop proprietary products, methods and such…and then do they recommend “the best” remedy, or their remedy? In a very simplistic way, the video is accurate, but it careful skirts away from the fact that every profession has it’s own interests to protect…and they will.

  2. [...] figure out beforehand if you are dealing with a butcher or a dietician. Share this:TwitterFacebookLike this:LikeBe the first to like this post. This entry was posted in [...]

  3. Sechel says:

    If the analogy is to Wall Street there’s stuff missing. In the case of Wall Street they may own the farm where the herd is raised and then not tell you that half the herd was sick. Sure they aren’t supposed to tell you to eat fish instead of meat but there has to be higher standard than leaving out important info , like they chose the mortgages in that CDO you bought on expectation they will fail. Also unlike the butcher shop Wall Street is not built on reverse inquiries and often they have the product and then attract the interest.

  4. phdrick says:

    The Butcher – Broker analogy is faulty. Most Broker/Dealers offer meat, fish, poultry, veggies, etc. If you tell the BD what you’re trying to achieve, the BD has the product depth to propose a solution. In the Whiteboard, the client says he wants to have a bar-be-que. He should have went to a supermarket (BD) instead of a butcher shop (proprietary mutual fund). I agree with JasRas that BDs are more closely aligned with “Dieticians.”