SEC’s uniform fiduciary rule could ‘haunt’ advisors
September 17, 2014 by Melanie Waddell
Creating a uniform fiduciary duty rule for brokers and advisors is a “deeply flawed” concept, and the Securities and Exchange Commission should instead create a “generalized obligation” for brokers that requires them to act in their clients’ best interest, Robert Plaze, the former deputy director of the agency’s Division of Investment Management, said Tuesday.
“To put BDs and advisors in the same box [under a uniform fiduciary rule] is not going to work and will lead to problems,” most notably “diluting the current Advisers Act fiduciary duty,” Plaze, who’s now a partner at the law firm Stroock & Stroock & Lavan in Washington, told attendees Tuesday at TD Ameritrade Institutional’s Fiduciary Summit, held in Washington.
“A uniform fiduciary duty may come back to haunt the Advisers Act fiduciary duty,” Plaze said. Click here to read…