How the Dodd-Frank Act Affects the Standard of Care Required of Brokers/Dealers

Authors

Joel Gold PhD, University of Southern MaineFollow
Jeffrey Gramlich PhD, University of Southern Maine
Dana A. Kerr PhD, University of Southern MaineFollow

Document Type

Article

Publication Date

3-2011

Publication Title

Journal of Financial Service Professionals

Abstract

This paper examines how the recently passed Dodd-Frank financial reform legislation would expand the fiduciary standard of care to include broker/dealers. The Dodd-Frank law specifies certain parameters for applying the fiduciary standard to broker/dealers, but it leaves the decision to the SEC to determine whether broker/dealer legal responsibilities will change. This article provides a historical background of the broker/dealer standard of care and considers the advantages and disadvantages to broker/dealers and investors of its possible expansion under Dodd-Frank.

Comments

Copyright ©2011 Society of Financial Service Professionals. All rights reserved.

Recommended Citation

Gold, Joel, Jeffrey Gramlich, and Dana Kerr, 2011, “How the Dodd-Frank Act Affects the Standard of Care Required of Brokers/Dealers” Journal of Financial Service Professionals, 65(2): 61-69.