Reish & Reicher has posted an article by Fred Reish entitled "Fiduciary Status for Broker-Dealers." Excerpt:
The President’s proposal for reform of the financial services industry was described in a Department of Treasury publication—or White Paper—entitled “Financial Regulatory Reform, A New Foundation: Rebuilding Financial Supervision and Regulation.” As a part of that proposal, the Administration included a provision to establish a fiduciary duty for broker-dealers who offer investment advice and to harmonize the regulation of investment advisers and broker-dealers. . .
Even though this is just a proposal, it carries change with it. That is, the proposal alone will cause change—because it will require that broker-dealers, RIAs, politicians, government officials, 401(k) plan sponsors and fiduciaries, and others, engage in a discussion about the meaning of fiduciary responsibility.
It will be interesting to watch the progress of this proposal and, if it is enacted into law, to see its long-term effect.
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