The Fragmented Regulation of Investment Advice: A Call for Harmonization

Discussions about regulating investment advice have largely focused on whether to harmonize the laws governing two categories of individuals within the securities world—registered investment advisers and stockbrokers.  The discussion has overlooked insurance brokers who often times also provide investment advice.  Our article broadens the focus by arguing that harmonizing the regulation of investment advice necessarily requires reforms reaching beyond securities regulation and into insurance regulation as well.  We argue that consistent standards should govern the investment advice provided to retail investors.  Given the current regulatory fragmentation, this may only be accomplished by adopting a federal Investment Advice Act.

Today’s fragmented … Read more