The Financial Industry Regulatory Authority issued a report this week aimed at helping broker-dealers better avoid conflicts of interest. The report never mentions the fiduciary standard but all of the elements of complying with it are there.
"While many firms have made progress in improving the way they manage conflicts, our review reveals that firms should do more," FINRA Chairman and CEO Richard G. Ketchum said in a statement.
FINRA, a private organization that acts as a self-regulatory body overseeing broker-dealers, said it observed a number of effective practices at various firms it studied that others in the business should consider following.
Among them: setting of a “tone from the top” and the adoption a code of conduct that, among other items, clearly prohibits investment recommendations that favor proprietary products.