Proposed fiduciary standards for broker dealers would impose enforceable, principles-based obligations to act in the best interest of customers. The recommendations by the Investor Advisory Committee (IAC) of the Securities Exchange Commission push the issue onto the SEC agenda. It is opposed by the broker dealer industry which views the investment adviser framework as incompatible with their business model. "A fiduciary standard for broker-dealers will guarantee that all financial professionals providing investment advice will act in the best interests of their clients" said Ohio Securities Commissioner Andrea Seidt, President of the North American Securities Administrators Association (NASAA), which represents state regulators. "NASAA urges the SEC to pursue the recommendations of the IAC to broker-dealers" Seidt added. Broker dealers (BDs) have historically been regulated as salespersons under the Securities Exchange Act, while investment advisers (IAs) are regulated as advisers
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