This blog post continues our expert analysis of complex investments and their regulation.
Thompson-Reuters has a brief interview with legal scholar Tamar Frankel addressing the different standards of care for brokerage customers. (TR)
Here's a quote:
Q: Can you really apply a fiduciary standard to Wall Street?
A: I think so. It will help to show who is a real salesman and who is a person who sells something but also has advice. Brokerage customers are not always in the position to make that distinction. For example, when I buy a dress and the saleswoman tells me that I look beautiful, I can judge for myself if that's true because I can look in a mirror and see I'm fat. But if a doctor or lawyer says the best thing for you is to have heart surgery or go to court, I have no idea about whether that advice is for my benefit.