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Proposed Imposition of Fiduciary Duties on Brokers

By Michael MacPhail, Esq.

          President Obama?s blueprint for financial reform includes a proposal to impose a fiduciary standard on securities brokers who currently are subject only to a suitability standard requiring them to make recommendations that fit a client?s risk tolerance, objectives and financial status.  This proposal would represent a victory for both brokerage customers and financial planners registered as investment advisers who have long argued that brokers who offer investment advice should be subject to the more fiduciary duties.  The SEC has excluded brokers from the definition of investment advisers as long as they did not receive special compensation for investment advice, and such advice was ?solely incidental? to their brokerage services...continue to full post

Full post as published by NASD, SEC and Regulatory Defense Blog on June 29, 2009 (boomark / email).