The Converging Worlds of Brokers and Advisors as Fiduciaries Under Regulatory Reform

Blaine Aikin, CEO and Kristina Fausti, Director of Legal and Regulatory Affairs

September 03, 2009

As a practical matter, the worlds of brokers and advisors have intersected for decades. Many brokers provide some level of advice and many advisors incorporate sales concepts from the brokerage arena to improve business results. Moreover, dual registration is commonplace and allows brokers and advisors to be both as circumstances dictate, even if clients don't understand when the hats change. But, given the high level of investor confusion and dramatically different regulatory structures and business models, the convergence of brokers and advisors in the marketplace has looked more like a collision than a harmonic union.
"Harmonization" is now a catch-word phrase in the realm of regulatory reform but it has far broader ramification for the future of how investment services will be delivered. In this webinar, we will look at the differences between the fiduciary and suitability standards, what "harmonization" looks like to the different major players in reform, the regulatory changes most likely to occur based upon up-to-moment information from the major regulatory players, and business ramifications of anticipated regulatory changes for brokers, advisors and dually registered "brovisors." Finally, we'll highlight some major issues that remain to be decided and go over steps brokers and advisors should proactively take to prepare for what lies ahead."