WINNERSLOSERSInvestors receiving advice from brokers14 of 19The 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.« Back to Financial Regulation. Related Articles:Fed's monetary policy toolboxHelp for mortgage borrowers?Financial meltdown: Credit cardsHow safe is your bank?Related Links:Types of banking institutionsSafe places for cashHow the economy affects youCommon mistakes in a bad economy advertisement
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.