Financial Regulation
Financial Regulation
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Financial reform: winners and losers

Investors receiving advice from brokers
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Investors receiving advice from brokers

The Senate version of the financial reform bill had originally called for brokers to be held to a higher fiduciary standard when giving clients investment advice on what stocks to buy. Instead, the final version ordered a study into the issue and kept the standard that broker recommendations must only be "suitable" for a client rather than the "best" products for the client, as a fiduciary standard would have required.

Still, there is one bright spot: At the conclusion of the six-month study, the legislation gives the SEC authority to put the higher fiduciary standard in place.


 

 

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