PENNSYLVANIA BECOMES FIRST STATE TO STOP LAWYERS FROM BEING FINANCIAL ADVISORS

The governing body to discipline attorneys in Pennsylvania, the Disciplinary Board of the Pennsylvania Supreme Court, has issued a prohibition against lawyers who are federally or state licensed financial advisors or insurance agents from recommending or making investments for clients if the attorney benefits financially. This is contrary to both the rules of the Securities and Exchange Commission and the American Bar Association Model Code of Professional Conduct which allows lawyers to profit from recommending an investment if the conflict of interest is disclosed to the client and the client still goes forward with such investment. The rule was apparently passed to prevent lawyers and non-lawyers from splitting fees.

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