Stock Broker Advice

 SEC regulations see that stock brokers have to treat their clients differently than in the past, if they already do not.

                       

Of course it won’t do much for most investment portfolios, but it makes bureaucrats feel better.

                       

In the past a broker had to be sure that an investment was ”suitable” for a client. What was suitable was often debatable, but that is what makes securities markets as they are.

                       

Now the broker is supposed to have a “fiduciary duty” toward the client. according to SEC intentions. That  opens a hornet’s nest of endless legal problems

                       

The main result of this gives investors more ammunition to sue brokers for real or imagined damages. (See the Earl J. Weinreb NewsHole® comments and @BusinessNewHole tweets.)