B-Ds’ Fiduciary Obligations Already There, Say Courts And Arbitrators

From Financial Advisor
By Ted Knutson
April 25, 2013

The Securities and Exchange Commission has not yet decided whether broker-dealers should be given a fiduciary responsibility. But according to three of the nation’s leading authorities on fiduciary law, the courts and arbitrators have already said the answer is yes — sometimes…

Usually, people see the fiduciary responsibility as something reserved to major financial relationships with advisors, lawyers and other professionals. But the duty is also prevalent in simple, mundane transactions, said Boston University law professor Tamar Frankel.

For example, a parking garage attendant has a fiduciary responsibility when a driver hands over the keys, Frankel said. Giving access to the car is not carte blanche approval to do anything the attendant pleases with it…

Read the full article at FA-mag.com.