Fiduciary Standard for Brokers Backed by SEC Advisory Panel
This article is for subscribers only.
Investment brokers advising retail customers would face a standard requiring them to recommend products in the best interest of clients under a proposal from a U.S. Securities and Exchange Commission advisory panel.
Members of the SEC’s Investor Advisory Committee voted today to recommend imposing a fiduciary duty on brokers who provide personalized investment advice. Brokers now are required only to steer clients toward trades or investments deemed suitable, while investment advisers are obliged to put clients’ interests first.