The Professional Obligations of Securities Brokers Under Federal Law: An Antidote for Bubbles?
43 Pages Posted: 8 Aug 2010
Date Written: January 1, 2002
The federal securities laws have professionalized the securities brokerage industry. The professional standards imposed pursuant to federal regime should operate to hold stockbrokers liable for professional malpractice similar to virtually every other profession ranging from law and medicine to landscapers and karate instructors. The efforts by courts to insulate brokers from liability create perverse incentives and will continue to destabilize financial markets.
JEL Classification: A12, G14
Suggested Citation: Suggested Citation