August 30, 2010
Until I read the paper today, I did not know that brokers, investors and dealers did not have the same standards governing them.
I think that investment advisors, brokers and dealers should have the same legal responsibility towards clients. The Securities and Exchange Commission should have a standard form that the above mentioned are required by law to give potential clients that discloses what their legal responsibilities are. It should also state in simple wording who a client can contact if they feel their broker, advisor or dealer has not performed to the letter of the law. A simple one or two page explanation will do. There should be a place for the client's signature and date as to when they received the disclosure information. It should require that a client be given a minimum of three business days to read, digest and ask questions re. the disclosure. The potential client then should be required to sign and date their acknowledgement. This should help weed out some of the unscrupulous brokers/advisors.
I am a senior citizen that recently had dealings with an advisor and broker. They both lied concerning their responsibilities to me. The law should require that recommended investments should be in the best interest of their clients depending on age, income
and goals.