Juli McNeely Defends Advisors in InvestmentNews Op-Ed

An Investment News op-ed article by NAIFA President Juli McNeely defends the reputations of honest advisors. In the response to a speech in which President Obama stated that some financial professionals are “selling snake oil” and bilking their retirement clients out of billions of dollars per year, McNeely explains how NAIFA members work very hard to benefit their clients and have helped millions of Americans successfully plan for retirement.
 
President Obama’s statements come in anticipation of a Department of Labor proposal to impose new regulations on registered representatives, which would require them to act as fiduciaries when advising on retirement investments.
 
“Regulations are important to protect consumers and to ensure their continued faith in their financial advisers,” McNeely said. “But those regulations have to be smart and address real problems. They need to avoid unintended consequences. They should not be based on cynical assumptions that honest advisers need the government to tell them to look after their clients' best interests.”
 
In a separate op-ed published in the Savannah Morning News, McNeely warned that the DOL rule, which President Obama referred to as “Wall Street reform,” would reach far beyond Wall Street.
 
“They could make it difficult for Main Street advisers to receive commissions, forcing them to instead charge direct fees for their services,” she says. “Consumers could lose the right to choose the adviser they want to work with and how they pay for financial services.
 
“More than 30 million American households have retirement savings in commission-based accounts, according to research by Oliver Wyman Inc. More than 7 million of those have balances too small to qualify for typical fee-based accounts. For the remainder, shifting to fee-based accounts would increase their direct costs by an average of 73 to 196 percent, according to the research.”
 
  • Posted March 23, 2015 IN
  • Comments (3)


Comments
Roy W. Kern
As always Juli you are right on. Thank you for being there for us.
3/30/2015 11:03:32 AM
Ike Trotter
I just got through reading Juli's column and thought her comments were terrific. Great piece, Juli!! Your talking points were right on. We are in a real "dog fight" with the wealth advisory community that does not represent the interests of middle America and Main Street. Thanks, Juli, for presenting our side of the conversation so well.
3/26/2015 8:45:13 PM
Joseph Cianchetti
Mt Obama's comment is very damaging to our Industry and the 99.9 % of the good work, hard working people are doing everyday.Putting Advisors interests above their Clients is a myth. Yes there are those that do, however they are a small percentage.Painting everyone that works on commission as snake oil salespeople will have lasting effect if not addressed promptly. I've seen some fee based Advisors touting the same thing. Fees can be exclusionary, somehow I think this is the precursor to the Gov trying to take over or at least erode confidence of clients... to the extent that the commissioned based sale will die on the vine. Ken Fisher is just one of the players that goes beyond the beyond in his disparagement of commissioned Advisors and the products they sell, mainly Annuities. This type of thinking must be met with professional disagreement. Apathy on this issue will result in the same outcome as the other Government solutions, which, almost all have been a failure.
Sempre Avanti
3/23/2015 1:52:20 PM