August 24, 2010
Currently, investors may be getting personalized advice from an investment adviser or a securities broker. But the advice is given under two different investor protection standards. The investment adviser, under a fiduciary obligation, is acting in the best interests of the client, while the broker must simply be making suitable recommendations. While perfectly legitimate under current rules, it simply doesnt make sense to have two different standards for what amounts to the same service.
I believe anyone that gives professional advice to clients regarding investments needs to be acting in the best interest of the client. This is not only fair but right.