Updated Tuesday, August 4, 2015 as of 1:28 AM ET

Groups Warn SEC Against Watered-Down Fiduciary Standard

A broad coalition of advocacy groups is calling on the Securities and Exchange Commission to press ahead with an expansion of a fiduciary standard to hold broker-dealers to identical standards of care for retail client that are already imposed on investment advisors.

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Comments (1)
"Dummheit kennt keine Grenzen" sagt Mann in German...

Certainly true here. Why on earth would a retail salesman want to accept an ongoing fiduciary liability for a simple sale?? He wouldn't, hence the shift to fee-based models. There should be no fiduciary liability for stockbrokers because they should not, as all their disclaimers loudly proclaim if one would only read them, be offering personalized investment advice in the first place. If they are then they should be properly registered as fiduciary investment adviser representatives.

The S.E.C. and FINRA needs to enforce regulations already on the books and rather than introducing new fiduciary rules for retail salesman, have a truthful and honest conversation about whether they need to withdraw the Series 6, 7, 22, 24, and other retail registrations and make all investment "professionals" subject to the same registration requirements, rather than the same, ongoing fiduciary duty and liability.

This entire conversation is just plain dumb and shame on the various organizations for pulling the wool over the eyes of a public that doesn't know whether it's coming or going most of the time!
Posted by Nigel T | Tuesday, June 11 2013 at 7:37PM ET
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