In March 2022, a judge struck down a Massachusetts rule that would put a stop to unethical investment brokers. CNBC turned to benefits and executive compensation partner Fred Reish for insight on the fight to protect consumers from poor investment advice.
“It is two steps forward, one step back,” said Reish on whether brokers provide financial advice that is in the best interest of clients. “But if you ignore those back steps and look at this over a five- or 10-year period, the trend line is definitely toward greater protection for investors and for retiree investors. You can see a better world developing in the marketplace.”
Reish also weighed in on the importance of the fiduciary standard of care. “You have an increasingly complex financial world, and you have consumers who by and large receive no education, who have no basis for reading 30-page documents and fine print and understanding what the industry terminology means,” Reish said. “It’s a hard world where consumers have to rely on their advisors.”