This video can be viewed at the below link.[1]

Have you noticed that when you get to the checkout line at the grocery store—you run into the candy and chips?

Often, grocery stores are laid out to encourage impulse buying, such as when stores place the fruits and vegetables on the perimeter. But the snacks, they’re in a central place, maybe just by the cash register.

Look, we all understand this. Grocery stores may do this to maximize some profits.

However, when you seek advice from advisers, like doctor or lawyers, the expectation changes. These professionals serve in a position of trust, and they must meet standards of conduct to ensure they are looking out for your benefit, not their profits.

Well, similarly, when we turn to financial professionals for advice, as so many Americans do, there’s a need that they look out for us.

When you make a decision with other people’s money, there are going to be some inherent conflicts. That’s a situation as old as antiquity.

Left unchecked, these conflicts might affect the quality of the advice that you receive, and in turn, the financial future you have worked so hard to build.

There are built-in certain concepts embedded in our regulation to protect you, like fiduciary duty, something called duty of care, duty of loyalty, best execution, best interest. These words have real meaning to us at the Securities and Exchange Commission, and we expect them to have real meaning for investment professionals.

Recently, our staff issued a bulletin about some of these principles, such as that investment professionals should, when giving advice:

1. Examine the reasonably-available alternatives—kind of makes sense;
2. Consider the risks and costs that their recommendations might create for you; and
3. Make recommendations with your best interest in mind, not theirs.

These obligations protect all of us and build trust in our financial system.

If you think that an investment professional might not be following these standards, reach out to us and find other resources.

Everything we do at the SEC is to help protect investors, and we are here to work for you.