Why a fiduciary duty doesn't create higher compliance costs

08/5/2013 | Financial Advisor online

A recent 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 and that fiduciary standards are broader and easier to follow than "subparagraph A, line 2c" rules. In addition, dually registered advisers tend to focus more on the Securities and Exchange Commission standards than on Financial Industry Regulatory Authority guidelines.

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