July 30, 2010
When working with a client investor one on one the suitability standard should be the guideline for acting in the clients best interest. It is in discussion with a client that their risk tolerance and knowledge of investing is learned by the broker.
This is an already heavily regulated industry on many levels.
Changing the standard to that of Fiduciary changes the entire working relationship between the investor and the broker.
Ethics should be the focal point of any working relationship and not changing the regulatory envirionment.