SEC Votes to Make Brokers & Investment Advisers Act in Best Interests of Clients

The Securities and Exchange Commission voted to finalize rules that require brokers and investment advisers to act in the best interest of their clients; “This rulemaking package will bring the legal requirements and mandated disclosures for broker-dealers and investment advisers in line with reasonable investor expectations,” explained SEC Chairman Jay Clayton according to Business Insider; the rules will force changes for brokers but they will still be allowed to charge trading commissions to clients; conflicts of interest will also have to be disclosed in addition to any potential fees a client might incur; there was one dissenting vote from Democrat Robert Jackson who said investor interests were not protected enough. Source.