If the Securities and Exchange Commission has its way, stock and bond brokers will have 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.
Under fiduciary rules, brokers could 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.
It’s a scary possibility even for efficient stock brokers, that can drive them all out of business.
Keep tuned.
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