July 15, 2013
I would suggest 2 levels.
The higher level would require stock brokers, salesman, anyone who can sell stocks, funds, insurance, etc to prove / be certified that they put the client's interest first over their own and comply with follow the Fiduciary Standards required of Registered Investment Advisors.
Brokers and other financial salespeople do not have to follow the Fiduciary Standards required of Registered Investment Advisors. Those six fiduciary standards require the advisor to:
Serve the client's best interest
Act in utmost good faith
Act prudently -- with the care, skill and judgment of a professional
Avoid conflicts of interest
Disclose all material facts
Control investment expenses
All others, not wanting to prove it / be certified would be classified as the lower level and hence the public would clearly know that they MAY NOT COMPLY.
At least this would let the public know which type they are dealing with and make their own decision.
Otherwise most may actually comply, but it is easy for dishonest ones to cheat people and the people won't know until it is far to late.
Hence the term "TRANSPARENCY"
The reason to make it clear is to protect the public investors. Keeping it cloudy and unclear just lets people be more easily cheated. Which way does the SEC really want it??