Sounding Off: Keeping Commissions?

Senior editor Ann Marsh wrote that more new RIAs were hanging onto commission income rather than choosing a pure fiduciary role. Investment advisor Tom Brakke weighed in on Twitter:

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Comments (2)
That's funny, I didn't know that accepting a commission completely blinded an advisor's ability to do the right thing. Who is Ann Marsh, or anyone else, to decide what is a more "pure fiduciary role"?

EVERY compensation system comes with inherent conflicts of interest, and anyone that says otherwise is either uninformed or sharing half truths. Is there any possibility that those with a "fee-only" bias are going to look in the mirror and realize that they are as susceptible to conflicts of interest as anyone else? In reality, I have been far more disappointed by the ethics of a few notable fee-only peers than I have ever been their dually-registered counterparts.
Posted by Robert D | Thursday, February 07 2013 at 2:27PM ET
Being a fiduciary is about integrity and doing what's right for your client. It's not about compensation. Chose the actions that are necessary and right for your clients first. Worry about commissions later. If you need more commissions, get more clients. Being a pure fiduciary is not that difficult.
Posted by Graeme W | Friday, March 01 2013 at 6:23AM ET
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