This Month's Publication
Newsletter #33 - January 2012
Duty Calls
Dodd-Frank and the Broker-Dealer: The Call for a Uniform Fiduciary Standard Under Section 913
To start off 2012, we pick up where we left off with another article on financial reform. Last month's regulation round-up briefly addressed the tightening of fiduciary duty standards. Investment advisers and broker-dealers oftentimes serve in similar capacities when it comes to providing investment advice to customers, yet the two groups are governed by different sets of rules pertaining to the duties owed their clients. Not only does this leave room for confusion regarding the legal responsibilities they must uphold, but it also leads to different standards of disclosure on issues such as conflicts of interest.
While the new rule has yet to be written, in this article we recapitulate the intended objective under Title IX of the Dodd-Frank Act, reveal the conclusions of the mandated study carried out by the SEC, and explore its remaining uncertainties. As always, we suggest that while much may change in the next year, the topic demands attention and analysis.
We hope you find this article informative, and would appreciate your feedback!
Dan Connor
Chief Executive Officer
