Stock and bond brokers these days are expected to observe more
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 possibility even for efficient stock brokers, that can drive
them all out of business. They tend to drift instead into the
advisory sector of the securities business.(See the Earl J. Weinreb NewsHole® comments.
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