“The SEC’s final rule ignores the explicit will of Congress and fails to require all financial professionals to abide by a strong, uniform fiduciary standard of care when providing investors with investment advice,” she said.
“Hardworking Americans have lost out on millions of dollars that could have been used to save for their children’s education, purchase a home, or save for retirement due to unscrupulous financial advisors who have put their interests and profit motives ahead of their retail clients,” Waters said.
“Today’s announced rule will only protect this conflicted behavior to the detriment of mom and pop investors,” Waters added.
Waters said she is also concerned at two interpretative releases the SEC voted for which appear to diminish the longstanding investment advisor fiduciary standard and give a broader exemption for brokers from having to register as advisors.
“[T]his rule could lower the standard that investment advisers currently abide by and mislead investors into thinking that brokers who comply with this new rule are putting their clients’ interests first,” Waters said.