Regulatory Outlook | 09.16.20
Even the Threat of a Tougher Rule on Financial Advice Has Helped Investors
A new study published by the Harvard Business School and the National Bureau of Economic Research suggests that even just the threat of a fiduciary rule has improved at least some of the behavior of brokers and financial service firms. The improvement began while Barack Obama was still president and it has continued, despite the deregulatory approach of the Trump administration. “The interesting thing is that these effects have persisted even though the [Obama era] fiduciary rule was never enforced,” said Harvard's Mark Egan. “We seem to be in a holding pattern right now, with these changes holding steady, given uncertainty over how the rules themselves might change over the next few years.”
Read the full article on New York Times.