Countering this, Better Markets, a financial reform lobby group, posted a memo on their web site advocating that people not believe the “spin,” posting common “myths” that surround the issue. The memo appears to directly address some of Gallagher’s statements regarding the status quo being acceptable. “No existing rules adequately protect retirement assets,” they write, noting the SEC only regulates transactions in securities, not all types of retirement assets. “And even as to securities advice, the SEC’s ‘suitability’ standard currently applicable to brokers is weak because it doesn’t require them to recommend only what’s best for their clients. Insurance products are regulated under a variety of state laws, which also don’t impose the best interest standard. That’s why an updated DOL rule is so important. Once it’s in place, then anyone giving advice about any kind of retirement asset will have to put their client’s best interest first.”
Read the full Mark Melin article here.