Broker-Dealer

In the United States, broker-dealers (“BDs”) are required to register with the SEC, and also to become a member of an SRO, which is FINRA. Title IX of the DFA required that the SEC consider whether BDs should be subject to a fiduciary duty (akin to the duty owed by a registered investment adviser to a client). Previously, BDs were subject to a suitability standard. Following adoption of Regulation Best Interest (“Reg BI”), BDs are now subject, in their interactions with retail clients, to a heightened standard of care, though not a fiduciary standard.