Articles Tagged with New Rule to Protect Investors

Wronged investors feel otherwise about ending abuse by brokers

There’s a new rule being proposed by the Labor Department that will help protect average investors from brokers who don’t always act in their customer’s best interest. This rule, five years in the making, has the brokerage industry concerned that Wall Street will be governed by a fiduciary standard.

While many brokers do put their customers’ best interests first, the new rule could make a difference in protecting the average investor from those who don’t. According to a recent article in the New York Times, “under current standards, brokers only have to recommend suitable investments, a requirement that permits them, for example, to recommend a more expensive fund that pays a higher commission even when an identically performing, cheaper fund would have been the better choice.”