SEC Calls For Uniform Fiduciary Duty Standard

Law360, New York (January 24, 2011, 2:41 PM EST) -- Both broker-dealers and investment advisers should have the same fiduciary duty when advising retail clients, according to a U.S. Securities and Exchange Commission report criticized by two Republican commissioners.

The SEC recommended that the new standard be no less stringent to investment advisers than that already applied by the Investment Advisers Act of 1940, according to the "Study on Investment Advisers and Broker-Dealers" staff report released Saturday.

While investment advisers owe fiduciary duty to their clients to act in their best interests under the Advisers Act,...
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