Do Brokers Act in Your Best Interest? The Answer May Surprise You.

Yahoo Finance -As it so happens, there is a precedent on the broker side for a fiduciary standard that has, until recently, not been examined closely. The SEC should welcome the findings in a newly published study by professors at Texas Tech University and Roger Williams University that looks not at cost projections, but at the real world impact today under existing state common-law standards. A common-law fiduciary standard is the body of law, developed over decades by the courts, not regulators or Congress.

Most investors, conditioned by heavy advertising, have clear 
expectations that their financial advisor is serving their best 
interest.  That is also partly due to the failure of regulators to rein
in the creative use of job titles.  Hundreds of thousands of sales 
professionals who used to be known as insurance agents and stock brokers
  now use titles that are meant to imply "trust me."  While many of the
newly minted advisors are serious about living up to their adopted 
titles in both name and substance, there is enough of the sales culture
still embedded in the industry to add to the public distrust associated
  with Wall Street.

...

As it so happens, there is a precedent on the broker side for a 
fiduciary standard that has, until recently, not been examined closely. 
  The SEC should welcome the findings in a newly published study by 
professors at Texas Tech University and Roger Williams University
that looks not at cost projections, but at the real world impact today
under existing state common-law standards.  A common-law fiduciary 
standard is the body of law, developed over decades by the courts, not 
regulators or Congress.

 

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