What I’d Like to See More and Less of in 2021

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Annie Spratt on Unsplash

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This is part one of a three-part series. Parts two and three will appear in the next two weeks.

We have a lot to reflect on this year. Here’s what I’d like to see more and less of in 2021.

More RIAs

I’ve given up expecting the SEC to adopt a fiduciary requirement for brokers that protects investors. The securities industry has done a masterful job of lobbying and muddying the waters on this issue.

RIAs are legally required to place their client’s best interest ahead of their own and to disclose any possible conflicts of interest. While brokers are required to act in the “best interest” of their clients, consumer advocates believe this vague standard isn’t “the same thing as putting the client first.”

It’s always been a mystery to me why any investor would entrust their life savings and financial security to someone who doesn’t have the highest fiduciary obligation to them.

By encouraging brokers to become RIAs, more investors will be served in an ethical, professional way.

I hope there will be more of them.