Several organizations backing higher standards for retail investment advice are urging the SEC to require brokers to act in the best interests of clients with some adjustments for their business practices rather than formulate a new approach to fiduciary duty....
"The goal in writing the new rules should be to extend the existing [Investment Advisers Act of 1940] standard to brokers, while clarifying its applicability in the context of broker-dealer conduct, rather than to replace the Advisers Act standard with something new and different," the letter states.
The letter was signed by the Consumer Federation of America, Fund Democracy Inc., AARP, the Certified Financial Planner Board of Standards Inc., the Financial Planning Association, the Investment Adviser Association and the National Association of Personal Financial Advisors. Read more >
Mark Schoeff, Jr.
April 1, 2012