Amendments to the Stringer Bill
Following our cover story in early May in which we presented – on the cover – the language proposed in a bill that would require agents and brokers to recite a rather ridiculous “disclosure,” we have had a waterfall of response.
Here is the language we quoted that agents and brokers would be required to disclose to clients:
I am not a fiduciary. Therefore, I am not required to act in your best interests, and am allowed to recommend investments that may earn higher fees for me or my firm, even if those investments may not have the best combination of fees, risks, and expected returns for you.
Of the responses received, one stands out for its bite. The writer has asked for anonymity and we will oblige, but I must report that he is a company and an industry leader who would never need to recite the absurd “disclosure” but who takes umbrage with it on behalf of the entire brokerage community with which the company he heads works.
He suggests that the following disclosures be adopted.
To be read by all senior officials at DFS when dealing with a member of the public or the industry:
I am called a regulator, but I am a prosecutor and am rewarded based upon the amount of money I collect in fines. Therefore, I’m not required to act in the best interest of a balanced, vibrant, or sustainable market, and am allowed to issue press releases and order fines even if those actions lead to the unwarranted deterioration of your industry and livelihood.
To be read by anyone holding or seeking elected office when dealing with anyone:
I am not a public servant. I’m a politician. Therefore, I am not required to act in your best interest and am allowed to issue press releases, make speeches, and solicit your contributions, even if what I say will bear no relation whatsoever to what I actually do when elected, and even if what I do may not result in the best combination of public policy and fiscal responsibility that will yield the best results for you as a taxpayer or citizen.
We welcome your suggested disclosures for elected, appointed and licensed individuals…and editors. SA