Why a fiduciary duty doesn't create higher compliance costs

08/5/2013 | Financial Advisor online

A study from the Financial Planning Coalition cites lower compliance costs for broker-dealers who also are registered investment advisers and operating under a fiduciary duty. Possible reasons for the lower costs, officials involved with the study say, are that dually registered broker-dealers tend to be part of large firms that help with compliance issues; fiduciary standards are broader and easier to follow than "subparagraph A, Line 2c" rules; and dually registered advisers tend to focus more on the Securities and Exchange Commission standards than Financial Industry Regulatory Authority guidelines.

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