Los Angeles partner Fred Reish was quoted in the Financial Advisor article “Watch What You Charge, With Or Without The Fiduciary Rule.” The article explores the responsibilities of financial advisors who charge more than their peers for products and services under the concept of “reasonable compensation limits.” The idea of these limits has been brought to the forefront with the Department of Labor (DOL)’s fiduciary rule; however, they were created by ERISA and the IRS code.

According to Fred, these limits cannot be undone by the DOL, the SEC or FINRA rule-making. Fred spoke to the impact of these limits: “Where we will see the most impact of these limits are on advisors who are outliers in terms of compensation. If you are an advisor, you will definitely have to think about what services you’re providing in order to justify what you charge. If you just want to just sell products and not offer service, you’ll have to charge less. If you’re an overpriced advisor, you’ll have to offer more services.”

Read “Watch What You Charge, With Or Without The Fiduciary Rule.”

Source: Financial Advisor
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