The Securities Litigation Expert Blog

A Fiduciary Standard for Brokers?

Posted by Jack Duval

Feb 12, 2013 3:06:00 AM

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.




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Topics: FINRA, RIA, Thompson Reuters, Fiduciary, Investment Advisors, litigation, SEC, Tamar Frankel, Compliance, regulation., Complexity

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