Legal Standards for Brokers - Transcript
The same Securities laws investment advisory laws Blue Sky laws are used to determine whether or not the broker or advisor who recommended the investments in annuities private placements or some sort of liquid security was appropriate and so it’s going to go back to regulation best interest was it in your best interest was it suitable the subset of Regulation best interest under the investment advisors Act was the investment advisor acting as a fiduciary and not breaching their fiduciary duty by putting you into these illiquid Investments so it’s the same measure you would in any other Securities cases although I would argue that you have to be more careful when you’re recommending these types of Securities to an investor.