In terms of brokerage under Standard concerning loyalty, which entity is considered the owner of brokerage?

In the context of brokerage under the Standard concerning loyalty, the client is considered the owner of brokerage. This principle emphasizes the fiduciary duty that brokers have towards their clients. A broker's primary responsibility is to act in the best interest of the client, ensuring that trades and investments are made based on what benefits the client, rather than on what may be most profitable for the broker or brokerage firm.

Loyalty implies that all actions taken within the brokerage arrangement should prioritize the client's needs, preferences, and financial goals. Therefore, any income or benefit derived from the brokerage activities ultimately belongs to the client, reinforcing the trust that clients place in brokers. When brokers operate under this standard, they help maintain a trusting relationship and uphold the integrity of the financial markets.

The other entities mentioned—such as the managing firm, the brokerage firm conducting trades, and the regulatory agency—do not hold ownership of the brokerage in the same way. While the managing firm and brokerage firm may facilitate transactions, their role does not equate to ownership; rather, they serve to support the client’s investments. The regulatory agency, on the other hand, oversees compliance and fair practices but does not have ownership over brokerage. Thus, under the concept of loyalty, the client retains ownership