NASAA Issues Investor Advisory to Address Confusion over Broker-Dealer Fees (with Lofchie Comment)

The North American Securities Administrators Association ("NASAA") issued an investor advisory based on new research showing that investors are confused about the service and maintenance fees charged by brokers for brokerage accounts.

The research also showed that investors "want clear and easy access" to fee information from their brokerages.

Lofchie Comment: The advice that NASAA gives investors in its advisory is good and sensible, particularly regarding situations in which unsuspecting investors could be overcharged. However, the "research" on which the advice was based (linked below) seems to have been designed for the prescribed outcome. This bias is unfortunate and unnecessary. A well-constructed research study would start with honest questions that could provide regulators with useful information about rules that should be proposed or adopted.

See: NASAA Investor Advisory. Related news: NASAA Research Shows Investor Confusion over Brokerage Fees (with Lofchie Comment) (April 8, 2015).