Video: Exclusive—Knut Rostad on Whether a Fiduciary Standard for Brokers Will Rebuild Investor Confidence

Why is the SEC recommending that the "fiduciary standard no less stringent than currently applied to investment advisers under [the] Advisers Act" be extended to brokers who provide advice? Knut Rostad, chairman of The Committee for the Fiduciary Standard and regulatory and compliance officer at the RIA Rembert Pendleton Jackson, sat down with AdvisorOne's Kate McBride to discuss the SEC's fiduciary recommendation and why fiduciary duty can't be simply "disclosed away." McBride is also a member of the Committee for the Fiduciary Standard.

The videotaped interview followed a Feb. 10 panel and Webcast discussing the SEC's "Study on Investment Advisers and Broker-Dealers." Hosted by the Center on Financial Services Law at New York Law School, and The Committee for the Fiduciary Standard, the New York event brought together fiduciary and securities law scholars and industry experts.

After a keynote speech in which Tom Bradley, president of TD Ameritrade Institutional,said that there is room for "pure sales and pure advice," and that the broker-dealer exemption should be eliminated, panelists debated the impact of SEC's recommendation to extend the fiduciary standard.