The Derivative Project
Betterment Brexit Trading Halt Shines Light on Abusive Broker Dealer Practices in ERISA Brokerage Accounts

Betterment Brexit Trading Halt Shines Light on Abusive Broker Dealer Practices in ERISA Brokerage Accounts

“These Customers Were Put at a Great Disadvantage” regulator says… The markets were abuzz when Betterment, a “robo advisor” blocked access to their customer accounts with no warning, as the Wall Street Journal reported on July 2, “Robo Adviser Betterment Stokes Concern Over Brexit Trading Halt,” following the UK’s decision to…

DOL and New Fiduciary Duty – What’s Changed?  Nada

DOL and New Fiduciary Duty – What’s Changed? Nada

FINRA and Disputing “Chasing Windmills” With over $14 billion in retirement accounts, Wall Street (the SEC’s FINRA) is charged with protecting IRA investors, from sales personnel steering their retirement assets into inappropriate products and/or high fee products and enforcing all securities laws, passed by Congress. The financial services industry inappropriately labeled sales…

Consumer Federation’s “Oath” Hides IRA True Legal Transparency

Consumer Federation’s “Oath” Hides IRA True Legal Transparency

Is Consumer Federation of America Using Social Media, Twitter, to Fight True Fiduciary Legal Transparency? Washington DC Advocate Better Markets, tweeted yesterday,  “The Document that You Should Insist that Your Advisor Sign”.  by Micah Hauptman, Financial Services Counsel for the Consumer Federation of America, a December 15, 2015 Opinion “Blog” at…

Financial Education “Poseurs”, Politics and 2016 Liquid Alt “Revolution”

Financial Education “Poseurs”, Politics and 2016 Liquid Alt “Revolution”

It has been a busy week so far dissecting new, disingenuous marketing strategies touted by Wall Street.  Seems just about everyone is now the “white knight” for the middle class retirement investor who is routinely giving up 1/3 to 1/2 of every dollar they save to redundant intermediaries.  However, the…

Kudos Charles Schwab: Leadership on Money Market Reform

Kudos Charles Schwab: Leadership on Money Market Reform

Systemic Risk, High Fees and Voluntary Recapture in Money Market Funds Unbeknownst to most retirement investors, a quiet war has been waged between the broker-dealer industry and the Department of Treasury Financial Stability Oversight Council (FSOC) over money market mutual funds. The issue is the systemic risk money market mutual…

Labor Day 2015:  Progress from the White House, Barriers from Media Increase

Labor Day 2015: Progress from the White House, Barriers from Media Increase

Lack of Transparency on Cost-Effective Retirement Investment Selection is Fueled by Wall Street’s Advertising that Controls Media and Consumer Message Labor Day 2014, The Derivative Project wrote on the loss of defined benefit pensions and the emergence of intermediaries that are siphoning off billions from American’s retirement nest eggs, without adding…

Senate Republican Testimony Pushed an Agenda that Preys on Middle Class Savings

Senate Republican Testimony Pushed an Agenda that Preys on Middle Class Savings

Primerica’s Schneider, Brookings Institution’s Litan, and Rebalance Inc’s Puritz July 21, 2015 Testimony at Senate Sub-Committee on Health, Education, Labor and Pensions The highlight of the Senate subcommittee testimony this week is perhaps the title of this hearing:  Restricting Advice and Education: DOL’s Unworkable Investment Proposal for American Families and Retirees.…

Trending: Are Bloomberg, Huff Post, Rolling Stone Promoting Phony Consumer Retirement Advocates?

Trending: Are Bloomberg, Huff Post, Rolling Stone Promoting Phony Consumer Retirement Advocates?

Summary of Issue – January 13 White House Memo on Conflicts of Interest -StockBroker or “Fiduciary” Advisor Registered with the SEC On January 13th, a five page White House memo, “Draft Conflict of Interest Rule for Retirement Savings”, by Jason Furman and Betsey Stevenson, argued that the costs of conflicted advice are…

Money Markets:  Suspend, File and Charge the Investor for Low Interest Rates

Money Markets: Suspend, File and Charge the Investor for Low Interest Rates

Moody’s actually did the unthinkable this week, with hardly a whisper.  They downgraded the money market mutual fund industry to negative.  Reuters covered it, hardly anyone else did – “Moody’s slaps negative outlook on U.S. Money Sector.”  Can’t have too much transparency for the retail investor.  They still think money market…