The US SEC’s fiduciary study recommends establishing a uniform fiduciary standard for investment advisers and broker-dealers when they provide investment advice about securities to retail customers. The fiduciary standard recommended in the study is consistent with the standard that currently applies to investment advisers. Other recommendations include suggestions to consider harmonization of the broker-dealer and investment adviser regulatory regimes, with a view toward enhancing their effectiveness in the retail marketplace. The study concludes that retail customers should be protected uniformly when receiving personalized investment advice about securities regardless of whether they choose to work with an investment advisor or a broker-dealer.

Two SEC Commissioners have publicly criticized the study. The main criticism has been that the study does not provide sufficient justification for making a recommendation that will fundamentally change the regulatory regime for broker-dealers and investment advisers providing personalized investment advice to retail investors. The public statement issued by the two Commissioners suggests that they could potentially support the recommendations contained in the study after further research and analysis has been completed.

Click here for the SEC’s press release and report.