Do you expect your financial advisor to give you impartial advice? Most people prefer advice in their best interests. However, is that what they are getting?
Registered representatives (Series 6 and Series 7) work by law under the suitability standard. The suitability rule states when a financial representative recommends the purchase, sale or exchange of any security to an investor, that representative shall have reasonable grounds to believe the recommendation is suitable for such investor based on his or her other security holdings and as to his or her financial situation and needs.
