June 7, 2013
If someone is paid on commission on what he/she recommends to an investor, i don't think it is possible to
1. have that person meet the current fiduciary standard
2. even less meet any other standard that would be at least as stringent as the current one.
perhaps the SEC is thinking that proper disclosure by whichever party is adhering to the new standard be done. But any disclosure requirement would only muddy the standard not make it any more stringent. Think of these advertising commercials for pharmaceuticals, does the extra disclosure at the end clarify the safety of the product or confuse it... "taking this drug if you have this or that ailment can lead to severe cases of that or even death"... are you reassured now? DO you understand better the safety of the product because of that disclosure? i don't think disclosure helps at all.