Whether you work in an RIA, or, since June 9, in a broker-dealer held to the Department of Labor’s fiduciary rule, you face heightened scrutiny for negligence compared with other wealth managers. The upshot? You could be guilty of negligence without even knowing it.
Earlier this year Joseph Brenner, chief counsel of the SEC’s enforcement unit, told a public meeting of investment lawyers that financial advisors held to a fiduciary standard – a standard which compels them to act in their clients’ best interests – face greater scrutiny for negligence than other types of investment advisors.
‘Enforcement 40’ for 2020
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