Financial Planning Online: Reg BI is a gift to ‘wolves of Wall Street,’ says Betterment CEO
Financial Planning Online, Sean Allocca, Wednesday, 12 June 2019,
Not “best.” Not even close.
As Wall Street applauds the passage of the Regulation Best Interest standard, chiefs of a number of digital financial services firms are voicing concerns about the stringency of the SEC standard and the impact it may have on the future of wealth management technology.
The rule, which passed by a margin of three-to-one last week, will soon dictate how advisory firms offer investment services and, in turn, how wealthtech firms build out new technologies. But it seems to have fallen well short of its goals of increased transparency, protection for individual investors and greater, cheaper access to investment advice, critics say.