At present, RIAs must adhere to a fiduciary standard under the Investment Advisers Act , while brokers operate under a “suitability” rule and are regulated by FINRA rather than the Securities and Exchange Commission. 

Dodd-Frank allowed the SEC to establish a uniform standard for advisors and broker-dealers providing personalized investment advice to retail customers. However, disagreements have delayed the process and the authority has yet to announce when, or if, it will proceed. 

Supporters of a more robust standard hope the SEC will act without further delay. Indeed, last August a group of well-known leaders in the investment world urged Congress, the SEC and the Department of Labor to “extend and heighten” protection for investors receiving advice. However, some financial services companies are fighting to prevent proposal of the rules, which would require brokers to put investors’ interests first.

According to 79 per cent of the 2013 fi360-ThinkAdvisor Fiduciary Survey, extending the fiduciary standard to include broker-dealers wouldn’t cost investors more for advice, while 69 per cent believe it wouldn’t price investors out of the market and 68 per cent say it wouldn't affect access to advice or products.

However, many respondents claimed investors don’t have the information required to choose of the type of advisor or sales relationship they would like, and thus argue that clarification regarding the roles of intermediaries - through titles, firm purpose and disclosure - is needed.

Meanwhile, an overwhelming 97 per cent believe that investors don’t understand the differences between brokers and investment advisors, as 72 per cent said the titles “advisor,” “consultant,” and “planner” imply a fiduciary relationship exists. Disclosures alone are not sufficient to manage conflicts of interest, according to 82 per cent.

McBride previously said that this issue is critical not just for wealthy investors but for “investors of all stripes,” and especially for people saving for retirement. In fact, 79 per cent of respondents to fi360 and ThinkAdvisor's latest survey agreed that ERISA  fiduciary duty should cover advice on rollovers out of 401s and IRAs.