Will Brokers be Held to Fiduciary Standards?
If President Obama's financial regulatory proposals are passed, a fiduciary duty would be extended to brokers offering investment advice. According to Investment News, fiduciary standards would require that brokers "put their clients' interests ahead of their own." Currently, brokers are held to a suitability standard, meaning that the advice and products offered have to be suitable for their clients, but not necessarily in their clients' best interest.
Please click here for "Plan on Fiduciary Standard Wins Praise" from Investment News.