Advisor Insights

Are Brokers Acting in Their Clients' Best Interest?

Morningstar

By Jasmin Sethi and Aron Szapiro

In 2015, the U.S. Department of Labor proposed the “fiduciary rule,” a regulation aimed at mitigating conflicts of interest in investment advice and ensuring that brokers act in the best interests of their clients. After the 5th Circuit Court of Appeals struck down the DOL’s final rule last spring, the SEC proposed a new standard of conduct similarly aimed at addressing conflicts of interest in April.