Los Angeles partner Fred Reish was quoted in a CNBC article titled “How the new 'fiduciary' rule will actually affect you.” Fred discusses the impending BIC (best-interest-contract) regulation, which goes into effect April 10, 2017 – and the reasonable compensation rule.
“[Under the rule], the advisor can't receive more than reasonable compensation," Fred said. "The more services he provides for the investor — if the investor wants it — the more those services are worth."
Fred notes that fees will change based on the services you seek.
"If you really need a higher cost, actively managed model, then you should ask for it," Fred said. "If you want to do the research yourself, but you want a second opinion, then that should be lower cost."