Tuesday, March 23, 2010
Wall Street Must Put Clients First
What’s the most significant difference between a stock broker and an investment advisor?
The investment advisor pledges to put his or her client’s interests first. That would require full disclosure of all costs and commissions, as well as any potential conflicts of interest. It’s a standard set by the Investment Advisers Act of 1940 and affirmed by the Supreme Court.
But stock brokers are only required to “know the customer” and offer products that are “suitable...”
MoneyShow: Wall Street Must Put Clients First
The investment advisor pledges to put his or her client’s interests first. That would require full disclosure of all costs and commissions, as well as any potential conflicts of interest. It’s a standard set by the Investment Advisers Act of 1940 and affirmed by the Supreme Court.
But stock brokers are only required to “know the customer” and offer products that are “suitable...”
MoneyShow: Wall Street Must Put Clients First
Permalink posted by markw @ 4:23 AM 
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