New York, NY securities attorney Jenice L. Malecki talks about the legal standards for brokers. She notes that securities laws, investment advisory laws, and state Blue Sky laws are all applied to evaluate whether a broker or advisor acted appropriately when recommending investments such as annuities, private placements, or other illiquid securities. The analysis typically revolves around Regulation Best Interest—assessing whether the investment was suitable and in the client’s best interest. For investment advisors, the standard also includes fiduciary obligations under the Investment Advisers Act, ensuring they did not breach their duty by placing a client into illiquid or inappropriate investments. While the legal framework mirrors that of other securities cases, she emphasizes that extra caution is warranted when dealing with these types of complex or illiquid products.