When your broker suggests that you put your money into one of her picks, is it good for you?
Brokers’ duties include fair dealing, suitable recommendations, accurate disclosure, trade only by client instruction and avoiding excessive trading. See: http://www.finrafoundation.org/web/groups/foundation/@foundation/documents/foundation/p119054.pdf
However, there is no duty to put your interest before theirs. So, that investment with the 6% front end load and back end penalty, that’s OK.
Now, however, Securities and Exchange Commission Chairman Mary Jo White has come out pushing for requiring that brokers have a fiduciary duty to their clients, a significantly heavier burden.