The Impact of the Broker-Dealer Fiduciary Standard on Financial Advice
March 22, 2012
The SEC is considering rule-making under the Dodd-Frank Act that would impose a uniform fiduciary standard of care for advisers and brokers, an effort that has been delayed due to congressional and industry pressure on the SEC to perform a comprehensive cost-benefit analysis. Critics claim that imposition of a fiduciary standard on registered representatives would result in significant changes in how broker-dealers conduct business by limiting a representative's ability to recommended commission investments, provide advice to middle-market clients, and offer a broad range of financial products. Professor Finke's research takes advantage of existing differences in state broker-dealer common law standards of care to test whether a relatively stricter fiduciary standard of care impacts the ability to provide services to consumers in an actual market environment. Join us as Finke shares the results of his recently published study, The Impact of the Broker-Dealer Fiduciary Standard on Financial Advice, and we discuss what this new information means for advisors.