I just wanted to update you that the bill to transfer control of fee-only investment advisors like The Conservatory, introduced by Congressman Spencer Bachus and reported to you by me in an earlier email has been mercifully tabled by its sponsor. As you will recall, the bill was an attempt by the retail brokerage wirehouses to squash the growing threat to their business model (which relies upon commissions, mark-ups, and hidden fees to extract their profits from often unsuspecting consumers) posed by fee-only advisors whose business model relies solely upon fully disclosed and transparent fees paid by their clients for objective and non-conflicted advice. The bill would have transferred oversight of fee-only advisors from the U.S. Securities & Exchange Commission to the retail brokerages themselves through their self-regulatory organization, FINRA.
Many recipients of my earlier email contacted their representatives and voiced opposition to the anti-consumer bill, and I have no doubt but that had a favorable impact. The war between the consumer and the retail brokerage industry has not been won, as they have considerable money and influence. But, the beast has at least been effectively beaten back in this battle! I very much appreciate your support.