Friday, June 03, 2016

Financial planning industry wants to take Obama administration to court over "best interest of clients" rule

Various trade groups are gathering to fight an Obama administration rule that financial planners work in the best interest of their clients (which sounds like common sense), as in this story by Jonnelle Marte Friday in the Washington Post, p. A12, link here.
The trade groups claim that financial planners face increasing threats of class action litigation.
The story catches my attention because I was approached several times in retirement to do this myself.  I wonder, how do you know if you’re acting in your client’s best interest if, in 2005 or so, you had advised he or she take out a subprime mortgage?
There is so much cheesiness in this business these days.