Historically, there’s been significant confusion over the issue of fees and investment advice.
Conflicts of Interest
Would you ask your butcher if eating thick juicy steak is the best thing for your heart? Of course not. You’d expect that his answer might involve a conflict of interest and misinformation.
With all we read about wirehouse brokers moving to the more consumer-centric independent registered investment advisor (RIA) business model it is rare that these brokers publically share their rationale for doing so. While they certainly must address the issue with clients a strict code of silence generally protects the wirehouse from any bad press.
When Bank of America management decided to relieve Sallie Krawcheck of her duties as head of Bank of America’s wealth management division they put more than 16000 Merrill Lynch brokers in the hands of a new boss who presumably has a different corporate agenda.