How the Dodd-Frank Act Affects the Standard of Care Required of Brokers/Dealers
Journal of Financial Service Professionals
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.
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.