Can Brokers Learn the Fiduciary Hip-Hop?

Under the SEC's so-called "Merrill Lynch Rule," brokers could charge asset-based fees without observing the fiduciary standards required of registered investment advisers.

In a 2-1 decision, a U.S. Court of Appeals has decided the SEC goofed.

Said the president of the Financial Planning Association, "After seven years of contentious debate, a court of law has rejected the SEC's untenable argument that it could exempt Wall Street from the fiduciary duties of the Investment Advisers Act of 1940."