Wall Street Shows its True Colors – Tries to Undermine Application of a Real Fiduciary Standard to its Activities

Post by Page Perry on November 25, 2009
 

Despite all of Wall Street’s advertisements touting its trustworthy expertise and advice, a Senate Banking Committee bill that would hold brokers to the fiduciary standard of conduct is receiving a “cool” reception on Wall Street, according to Sara Hansard in her November 15 InvestmentNews article, “Dodd bill would make reps fiduciaries.” The standard would require all brokers to put the client’s interests first, the same as traditional investment advisors. Based on pervasive television advertising by brokerage firms, many brokerage firm clients justifiably believe the firms promise to do that already.

Categories: Brokerage Firms, Investment Advisers, Regulatory Developments, Securities/Commodities Arbitration, Securities/Commodities Litigation