The SEC proposed a package of rulemakings and interpretations designed to enhance the quality and transparency of investors' relationships with investment advisers and broker-dealers, while preserving access to a variety of advice relationships and investment products. The proposals include requiring a broker-dealer to act in the best interest of a retail customer when recommending any securities transaction or investment strategy involving securities to a retail customer, as well as an interpretation to reaffirm and clarify the SEC's views of the fiduciary duty that investment advisers owe to their clients. As a whole, the SEC says the proposed rules and interpretations would enhance investor protection by applying consistent principles to investment advisers and broker-dealers; specifically, provide clear disclosures, exercise due care and address conflicts of interest. The SEC also clarified that the investment advisers' and broker-dealers' specific obligations would be "tailored to the differences in the types of advice relationships that they offer."

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