How the Legal System Can Help Millions Retire: A Call for Improved Application of the Suitability Standard


An increased awareness in legal circles of the value of aggressive investments is necessary and the recommended solution should have two divergent effects on broker liability. On one hand, a broker who recommends growth investments should find his potential liability has decreased because the legal profession no longer solely focuses on financial loss. On the other hand, a broker who invests conservatively should discover his liability has potentially increased because his recommendations may not be in the client’s best interest. The value of both of these effects is that it causes brokers to have a substantially greater incentive to invest aggressively enough to help millions of Americans come closer to their goal of retirement.


Banking and Finance Law | Law and Society | Retirement Security Law | Securities Law

Date of this Version

April 2006