Investor protection: New rules threaten traditional brokerage model

Dodd-Frank Act US fiduciary standard hits brokers; Costs likely to increase for issuers and investors

As the SEC’s comment period for the Dodd-Frank regulation that seeks to make investment advisory a level playing field draws to a close, the future of traditional brokerage models in the US looks set to change.

According to a survey released in September by a group of consumer organizations in the US, more than two-thirds of individual investors believe they receive the same quality of advice from a broker as they would from a registered investment adviser.

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