He also urged brokerages to start taking steps toward improving client disclosures and documenting investment recommendations in a manner the SEC may ultimately require upon completing the study or rule-making that may be required by Congress. Ketchum said brokerages should adopt clear disclosures to present to investors when they buy securities, instead of disclosures that investors sign when they open accounts.
One option, he said, could be to develop Website disclosures that are clear and simple for investors to understand, while providing links to more complicated details for customers interested in that information.
"You want your customers to understand but you also want to protect yourselves," he said.
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