July 30, 2010
I am writing to OPPOSE The Dodd-Frank Act section that would allow the SEC to require that all broker-dealers be held to the same legal fiduciary requirement investment advisers when providing advice to clients. I am both a registered investment advisor and a registered representative and I find the definitions of fiducary duty in the Act extremely vague. The act does not define what the rules are for compliance and would open up retroactive interpretation of these vague standards and only increase litigation, not client (consumer) satifaction. Also, it is not necessary as we already take great effort to act in the best interest of our clients weighing each clients situation with care as to the information given and the product chosen. The current suitability standard also is a clear and heavily enforced standard. Each time we open a client account or recommend an investment, we go through many disclosure forms and questions with clients to assure that product is suitable and the clients signs those forms acknowledging their understanding and disclosures. This legislation would also increase compliance costs for firms which ultimatley would be passed on to clients. Moreover, many samll investors would be hurt as firms could no longer afford to work with them. The SEC should not enforce the fiducuary standard on all clients when it would ultimately be to their detriment.