While broker-dealers and investment advisers may treat their clients differently, SEC Chairman Mary Schapiro believes all securities professionals should be subject to the same fiduciary duty.
Speaking at the Consumer Federation of America's annual financial services conference Dec. 3, Schapiro took issue with the different set of standards for investment professionals.
"If it's a broker-dealer, he's sold a product that is, 'suitable' for him. If it's an investment adviser, he gets treated under a higher standard-he fiduciary duty standard-meaning that the investment adviser has to provide advice that puts the investor's interest first," Schapiro said.
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