August 3, 2010
In an ideal world, stockbrokers should be held to the same fiduciary standards as Investment Advisors. But there are hundreds of thousands of stockbrokers and I think the logistics of training them, monitoring them, and enforcement would be all but impossible--and expensive.
Instead, why not cause EVERY transaction in an investor's account to generate a confirmation detailing ALL material facts, including the GROSS COMPENSATION received by the B/D? Doing this would, I think, all but eliminate the "no commission" sales pitch used by too many stockbrokers to market IPOs, 12b-1 mutual funds, variable annuities and probably other products unfamiliar to me.