The SEC has decided to change its regulatory rules concerning stock brokers, in keeping with new governmental regulatory policy. I wonder how long they will be operative. The new regulations will simply be too restrictive on brokers, to a point, where sooner or later, they must be modified.
Stock and bond brokers now are to observe fiduciary rules when discussing investments with clients. In the past, all they were obligated to do was see that investments were suitable for their clients.
Now, under fiduciary rules, brokers can be sued by tort lawyers for any imagined infraction and/or lack of explanation. This makes the broker’s job too scary for any practitioner to contemplate keeping.
A market downturn will result in a spate of unwarranted lawsuits.
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