I almost choked on a crab leg last night when my friend, an investment advisor, told me that Obama's fiduciary rule that was due to come into force on April 10 before Trump delayed it will increase his upfront commission on T Shares of REITs from 2% to 3%.
This begs the questions, "Why in the world does the Department of Labor and not Securities and Exchange Commission regulate these commissions?" abd "Why are there two agencies with two sets of rules regulating in the same space?" This has been known for months: DOL fiduciary rule's unintended consequence: higher fees for investors As broker-dealers move toward uniform commissions to comply with the Labor Department rule, investors could end up paying higher prices than in an unregulated environment Sep 16, 2016 @ 11:37 am As broker-dealers adjust to the new Department of Labor fiduciary rule by instituting uniform commissions on a wide swath of investments, investors could be faced with higher prices on some investment products. LPL Financial, the nation's largest independent broker-dealer, is instituting new uniform pricing rules for alternative investments such an nontraded real estate investment trusts that could actually increase the initial price for some investments on its platform. For example, Carey Watermark Investors 2 Inc., a nontraded REIT managed by W.P. Carey, has an upfront commission of 2% on its T shares, according to its prospectus. Under LPL's new pricing policy for alts, the upfront commission to the broker on T shares, the only nontraded REIT share class that will be allowed on LPL's platform in the future, will be 3%. To remain on the platform, Carey would have to increase the upfront commission, and thus the price, on the REIT an additional percentage point. http://www.investmentnews.com/articl...-for-investors <http://www.investmentnews.com/article/20160916/FREE/160919952/dol-fiduciary-rules-unintended-consequence-higher-fees-for-investors> -- -- Thanks for being part of "PoliticalForum" at Google Groups. For options & help see http://groups.google.com/group/PoliticalForum * Visit our other community at http://www.PoliticalForum.com/ * It's active and moderated. Register and vote in our polls. * Read the latest breaking news, and more. --- You received this message because you are subscribed to the Google Groups "PoliticalForum" group. To unsubscribe from this group and stop receiving emails from it, send an email to [email protected]. For more options, visit https://groups.google.com/d/optout.
