" '[R]everse churning', where an advisor charges an ongoing investment management fee ... is likely to be a growing regulatory concern in the coming years, as the DOL fiduciary rule spurs a massive shift towards various forms of fee-based brokerage and advisory accounts.... [T]he scrutiny on reverse churning raises troubling concerns when paired with the growing popularity of using index funds, ETFs, and passive investment approaches. How is an advisor supposed to justify an ongoing advisory fee when the right thing for the client to do might really be to do nothing?"

MORE >>