Understanding the standard of care for broker-dealers and the DOL’s fiduciary rule: a MoFo report

Author: Amélie Labbé | Published: 12 Jan 2018
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Until recently, broker-dealers operating in the US weren’t subject to a fiduciary standard when dealing with their retail clients. The passage of the Dodd-Frank Act in 2010 included a provision enabling the Securities and Exchange Commission to consider and propose a higher standard of care for broker-dealers – something which it has not yet done but appears intent on pursuing this year. DoL1

The Department of Labor (DOL) on its own adopted a fiduciary standard in 2016 for retail clients. This has been met with much controversy and criticism. President Trump weighed into the debate, ordering the DOL in early 2017 to re-evaluate the rule and its impact, pushing it to postpone the DOL rule’s full implementation to 2019. 

This exclusive report explains how the rule works and its impact in practice, taking into account uncertainty as to its final version. 

A free PDF of the report can be downloaded here.

Please contact the authors for additional details: 

Paul Borden, partner, San Francisco
Tel: +1 (415) 268-6747

Hillel Cohn, senior of counsel, Los Angeles
Tel: +1 (213) 892-5251

Lloyd Harmetz, partner, New York
Tel: +1 (212) 468-8061

Dylan Naughton, associate, New York
Tel: +1 (212) 336-4159




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