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Mixed Messages
Steven B. Weinstein
05/02/2005
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If the SEC refuses to eliminate the double
standard, then I call on the securities industry to voluntarily cooperate; it
has so much to gain by willingly registering all those who maintain the pretense
of being pure investment counselors. Many friends of mine in brokerage firms who
have migrated to an advisory role have already registered as investment
advisors, recognizing that they are helping the industry become a truly
transparent arena where every player wears the proper uniform and every investor
clearly sees who’s who.If all this is mere wishful thinking, then I would
appeal to the House Committee on Financial Services to consider legislation that
strengthens the 1940 act to clearly require all individuals who give investment
advice to put their clients first and disclose all conflicts of interest.
This action would give effect to Congress’s original purpose in enacting the
securities laws: the protection of investors, and the promotion of efficient
capital markets.  | Steven B. Weinstein is
president of Altair Advisors,
a Chicago-based firm
providing independent
investment counsel. |
Illustration by Matt Mahurin
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