Professor Ribstein observes here that: "One of Dodd-Frank’s major gifts to lawyers is Section 913(g), titled authority to establish a fiduciary duty for brokers and dealers.” This provides authority to the SEC "to create a standard of conduct for broker-dealers and investment advisers…." Apart from the fact that most fiduciary definitions traditionally have been a matter of state law, the good professor addresses the issues raised by this unchartered territory. For example, he notes:
" … forty years of chaos triggered by the more limited statutory fiduciary duty of mutual fund advisers regarding their compensation, still unresolved by the Supreme Court’s decision in Jones v. Harris. The confusion resulting from an open-ended fiduciary duty could be even worse. "