Brokers, Advisors, and the Fiduciary Standard

The question of fiduciary duties for brokers[1] has been a popular topic of late, especially since the Department of Labor suggested imposing fiduciary duties on brokers handling retirement products in February of 2015[2].  More recently, there was an uproar after Robert Litan was forced to resign from the Brookings Institute amid accusations–chiefly from Senator Warren (D-MA)–of bias towards the financial industry in his recent report and testimony before the Senate.  The report[3], co-authored with Hal Singer, argued that DOL’s proposed rule would impose large costs on investors, particularly less-wealthy investors.  The report has been aggressively critiqued in other quarters[4] for … Read more