Monday, January 24, 2011
NASAA Statement on SEC Study on the Obligations of Brokers, Dealers and Investment Advisers
“The SEC staff recommendation to apply a fiduciary duty to broker-dealers who provide personalized investment advice about securities to retail customers will have a significant positive impact on investors.
“State securities regulators routinely see the financial devastation caused when the interests of investors do not come first. That is why NASAA has consistently urged policymakers to protect investors by requiring all who provide investment advice about securities to be held to the fiduciary duty currently applicable to investment advisers under the Investment Advisers Act of 1940.
“We look forward to assisting the Commission as it develops new rules to apply a fiduciary standard of care and loyalty to all who provide investment advice to ensure that this standard is as strong as the existing fiduciary duty of the Advisers Act.”