Congress Conceives the Temporary Fiduciary

"Investment adviser groups are up in arms about a one-sentence provision buried in the sweeping financial services reform legislation approved last week by the House of Representatives," reports Investment News. The bill would impose fiduciary duty on brokers offering investment advice. But . . .

Nothing in this section shall require a broker or dealer or registered representative to have a continuing duty of care or loyalty to the customer after providing personalized investment advice about securities.

Discount brokers prompted the "hat-switching" provision, according to lobbiyists.