Hellobee Boards

I'd love to get a good understanding of what they are proposing to repeal. A lot of work has been done globally to prevent this stuff from devastating economies again, and I don't think the global economy shares the same views as the GOP.

so when Lehman bros and bear sterns went under suddenly and seemingly without warning and the next day the government had to bail out AIG they realized that no one had been monitoring the large financial institutions or the small hedge funds who shorted mortgage back securities. Dodd frank was kind of put together with a hot glue gun with the intention of really not getting caught with our pants down again by creating several new agencies, laws and rules that put all financial institutions under more scrutiny. Everyone knew it was the largest companies who screwed everything up and basically colluded with each other, so the intention of Dodd frank was really to go after them. But for whatever reason in reality it's only hurt smaller community banks that don't have such a large loan portfolio and in turn hurt the consumers who would have benefited from those loans. So it was a good idea in theory and we still need more regulation (not less), but it failed to do what was intended.

Although I hear an earful about this since DH is a regulator I still don't understand out it was supposed to protect consumers. DH always poses the same question: did I notice a difference in the amount of paperwork required to secure our mortgages, first time vs second time, or the amount of stuff we had to sign, first time vs second. Nope. The point is consumers still don't know what they are getting into.

@Mama Bird: he probably means the Department of Labor's new fiduciary rule which is set to take effect in April. Trump has asked the DOL to look at that one as well though and the compliance date may be pushed back.

I agree with your relative that regulations that apply equally to Merrill Lynch and to one or two person practices can be a huge burden to the small providers. The banks: brokerages can afford tons of compliance and legal staff. Its also frustrating for some because advisors are already regulated by the SEC and obligated to act in clients' best interest. This new rule just means more paperwork and compliance work for them, not any really improvement for their investors. On the other hand, brokers are not held to a fiduciary standard and I have no doubt that many, many investors don't know that they're basically dealing with a salesperson NOT a true advisor (in some cases). It would be nice to find a way to protect and educate investors without every single agency (SEC, DOL, state regulators, and more) piling new rules on to small businesses who are already working to do their best for clients.

http://www.financial-planning.com/news/rias-are-underestimating-the-impact-of-the-dol-fiduciary-rule