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Full-Text Articles in Securities Law
A Summary Of The Sec Study On Investment Advisors And Broker-Dealers, Christine Lazaro
A Summary Of The Sec Study On Investment Advisors And Broker-Dealers, Christine Lazaro
Faculty Publications
(Excerpt)
For some time, there has been a debate over what the appropriate standards of care are and should be for both broker-dealers and investment advisers. The standards vary based on where the investment professional is, where the customer is, what types of services are being offered and what responsibilities are assumed. Across the country, there is a complete lack of uniformity. Congress considered this when drafting the Dodd-Frank Wall Street Reform and Consumer Protection Act. Accordingly, pursuant to Dodd-Frank, Congress required the SEC (the “Commission”) to conduct a study to examine the current standards of care for both brokers …
Fiduciary Duty - Now And In The Future, Christine Lazaro
Fiduciary Duty - Now And In The Future, Christine Lazaro
Faculty Publications
(Excerpt)
The celebrated jurist Benjamin Cardozo opined that the fiduciary duty is “the duty of finest loyalty”, and that a fiduciary “is held to something stricter than the morals of the market place. Not honesty alone, but the punctilio of an honor the most sensitive, is then the standard of behavior.” The question most customers have is whether their broker is subject to this duty of finest loyalty, or if they are bound merely by the morals of the marketplace. Currently this is a very difficult question to answer, and will depend on whether the customer is dealing with a …