Fiduciary Duty For Brokers A Bad Call, Attys Say

Law360, New York (March 19, 2010, 6:24 PM EDT) -- One of the most controversial pieces of the mammoth financial reform package currently before the U.S. Senate is a provision that would hold securities broker-dealers to the same fiduciary duty standard as investment advisers — a move attorneys warn could drive up the cost of investing and lead to a litigation spike.

In addition to exposing them to more risk, imposing a fiduciary duty on broker-dealers would effectively expand the scope of their jobs, making their services more expensive, according to attorneys.

“If a fiduciary duty...
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