fiduciary duty

The Broker Oath - But Will It Work?

The Broker Oath - But Will It Work?

Thanks to a recent decision by the Fifth Circuit, it appears that brokers will, once again, get off the hook when it comes putting their clients' interests in front of their own. Into the breach has stepped an idea that has been kicking around for a years now, but which may be the best of several uninspiring options to compel brokers to act more responsibly toward investors: The Oath.

Securities Industry and the "Best Interest Standard" for Investors

Securities Industry and the "Best Interest Standard" for Investors

For decades, broker dealers and financial advisors were only required to uphold their “fiduciary duty” toward client-investors. Now the US Department of Labor and FINRA are working together to enforce a higher standard of care - the "best interest standard." But is it really a higher standard?

Brokers Create Illusion of Fiduciary Duty Through Savvy Marketing

Brokers Create Illusion of Fiduciary Duty Through Savvy Marketing

Misleading advertising prevalent among brokerage firms lulls investors into a false sense of security over their investments. They stop checking up on their accounts and their broker because they trust him or her. Bad move. Investors must always practice good financial self-defense.

Broker Conflicts of Interest Cost Investors Billions Every Year

Broker Conflicts of Interest Cost Investors Billions Every Year

The Chairman of the Council of Economic Advisors has ruffled some serious Wall Street feathers with the release of a recent report suggesting that Americans with 401(k) retirement accounts could be losing $8 billion to $17 billion per year due to opportunistic trading by the brokers managing their accounts.