The Securities and Exchange Commission is seeking a new uniform fiduciary standard for broker-dealers and investment advisers, Reuters reports. The rule will require them to place retail customers ahead of their own financial interests and act in a client’s best interest. Under current rule, broker-dealers are only required to recommend products that are “suitable” to mom-and-pop investors. The higher standard of fiduciary duty will apply to both groups and is intended to raise investor protection and cut investor confusion for investors, broker-dealers and investment advisers, adds The New York Times.
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