SEC Seeks Disclosure From Brokers

SEC’s Mary Schapiro urges brokers, selling financial products, to reveal upfront the type of compensation.


The Securities and Exchange Commission Chairman is urging brokers and advisers, selling financial products, to reveal upfront the type of compensation they receive for making those sales, The Wall Street Journal reports. Mary Schapiro is calling for broker-dealers and investment advisers to be subject to the same disclosure and licensing requirements, supporting efforts in Congress to harmonize fiduciary standards on those professionals.

Schapiro supports the Congress efforts to require broker-dealers to be subjected to the same fiduciary standards as investment advisers. All securities professionals should undergo the same standard of conduct, licensing and qualification requirements, disclosure obligations, regulatory and record-keeping standards and a robust examination and oversight schedule, added Schapiro.

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