Investors wary of biased advice from stockbrokers can look forward to new disclosures that shine more light on the terms of their relationship, industry officials and regulators say, the Wall Street Journal reported. The disclosure is likely to be required under a regulation being written by the Securities and Exchange Commission, according to leaders of Wall Street trade groups. The SEC is close to proposing the regulation, its own version of the Labor Department’s “fiduciary rule” that required brokers handling retirement accounts to always put their clients’ interest ahead of their own financial gain. SEC Commissioner Hester Peirce cautioned that the disclosure would need to be brief and easy to understand, in contrast to the long, elaborate brochure that money managers are required to give clients.
