“Thursday's vote by the U.S. Securities and Exchange Commission (SEC) to enact so-called “Best Interest” regulation relating to the responsibility investment brokers and advisors owe to their clients will put New York City’s retirees, consumers and their hard-earned savings at risk. In voting to adopt its final rule the SEC has squandered a historic opportunity to protect the retirement and personal savings of New York families and all retail investors. With this backwards regulation, the SEC is serving the best interest of only bankers and brokers who will use these regulations to profit at the expense of their clients.
“Those who invest their hard-earned money with investment professionals deserve to know those professionals will provide objective advice that benefits their bottom line. However, investment professionals are often permitted to push investments that line their pockets with high fees or commissions. This rule allows brokers to ‘explain away’ any conflicts of interest and squeeze their clients for fees. This will only serve to mislead investors, potentially weaken existing protections, and allow reckless financiers to cash in. It’s another give away to those who gambled away our economy a decade ago. Turning back the clock now makes no sense at all.
“Hardworking New Yorkers deserve honest and responsible investment advice. That is why we will champion State legislation to be introduced in the next session which would require all investment professionals operating within New York State to place the interests and well-being of their customers above their own by abiding by the fiduciary standard, a strict set of requirements that protect consumers and their savings. We won’t let New Yorkers get rolled or allow the rules to be rigged against them. We will stand up for working people and ensure New Yorkers don’t give their hard-earned dollars to dishonest brokers.”
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