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Fiduciary Standard Quandary: First Avoid 'Harm'onization
Fiduciary News; registration may be required
Nov. 14, 2017
"Reliance on disclosure may be viewed as a loophole.... Reliance on more disclosure as a remedy will water down the standard and provide weak consumer protection ... The very term 'harmonization' implies compromise.... All the voices for harmonizing are coming from the brokerage industry seeking to effectively eliminate the 1940 Act and the Conflict-of-Interest Rule. Though rarely mentioned, the 1940 Act and suitability standards have already been substantially harmonized, de facto, regarding conflicts in enforcement."
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