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  2. Suitability Standard

Suitability Standard

The level to which a broker is typically held with respect to his conduct with his consumers. Unlike an investment advisor, a broker is not obligated to act in the best interests of his client and, as such, can freely choose investments with higher cost for the client but pay higher commissions for the broker. Compare to a fiduciary duty, a higher standard of care placed on investment advisors.

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