As of now, stock brokers have to put your interests before their own bonuses
April 6, 2016 - Uncategorized
WASHINGTON — High fees. Conflicts of interest. Inappropriate investments.
The Obama administration is going after a host of perceived rip-offs with the new rules it’s unveiling Wednesday for brokers — the men and women who recommend investments for people looking to save for retirement.
Previously, brokers who sell stocks, bonds, annuities and other products were required just to recommend investments that were merely “suitable” for a client.
They’ll now have to meet a stricter standard: They will be considered “fiduciaries.” That means they have to act in the clients’ best interests above all. Read more…