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Consumers confused about fiduciary, suitability standards

  • July 19 2011, 9:56am EDT

While recent legislation has sparked debate about suitability versus fiduciary standards, a majority of investors do not understand the difference between the two, a survey by J.D. Power and Associates finds.

Eighty-five percent of investors have either not heard of or do not understand the difference between a suitability standard, whereby an adviser is supposed to recommend investments they deem suitable, and a fiduciary standard, whereby an adviser is required to act in the best interests of their client.

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