Independent Registered Investment Advisors (RIAs) are held to a higher standard than stockbrokers when it comes to putting investors' before their own. Independent RIAs have what is called a “fiduciary duty” to their clients, which means they must, among other things:

• Act in the best interest of their client
• Observe procedures regarding the allocation of investment opportunities
• Monitor for best execution of trades
• Have policies regarding affiliated broker-dealers and maintenance of brokerage accounts
• Disclose any and all conflicts of interest
• Adopt and administer a code of ethics
• Stockbrokers are held to only a “suitability” standard on the part of their broker-dealer. There are two types of “suitability”:

- “Reasonable Basis” Suitability - the broker-dealer must believe that the
recommended security is suitable for any investor

- “Customer-Specific” Suitability - the broker-dealer must believe that its
recommendation is suitable for that particular investor