The Battle Over Broker Rules Goes Local

Ordinary investors face a confusing situation when it comes to sizing up the people doling out financial advice. Can they can be trusted to act in their clients’ best interests, or should they be treated with caution—like a car salesman?

It turns out either answer could be correct, depending on the adviser. A registered investment adviser works for a fee and has a fiduciary duty to make the client a priority. Others, such as traditional securities brokers, are held to a lower standard and might skew their advice based on the commissions they receive for selling mutual funds, annuities, and other products.