Banks Law Office Supports Fiduciary Standards For Brokers

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Government shutdown causes a delay in the vote for tougher fiduciary standards giving Banks Law Office an opportunity to encourage support for the SEC advisory panel's proposal to mandate that brokers put the interests of their clients before their own.

Fiduciary For All

They don’t deny their loyalty obligations to clients who rely on them until there is a dispute.

Banks Law sends a hats off to the SEC Investment Advisory Committee for recommending a fiduciary standard for retail brokerage firms. A fiduciary standard simply requires that the fiduciary place the client’s interest first.

Robert S. Banks Jr,, an investment fraud attorney for 30 years states, "I have yet to see a financial advisor, however they are registered or licensed, disclaim that obligation while they are giving advice and getting compensated to do so. They don’t deny their loyalty obligations to clients who rely on them until there is a dispute."

Main Street investors don’t know the difference between a Registered Investment Advisory firm and a broker-dealer. As pointed out in a 2010 New York Times article, investors only know that they have a financial advisor, and they put their financial lives in the hands of that person. Banks Continues, " It makes no sense to hold some financial advisors to one standard and others to another, depending only on how they are licensed. If you give investment advice expecting a client to rely on it, you ought to be a fiduciary."

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Bob Banks
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