The head of the U.S. Financial Industry Regulatory Authority supports the adoption of a fiduciary standard for brokers, and calls for more straightforward disclosure of fees and conflicts.

In remarks delivered in Washington, D.C. Tuesday, Rick Ketchum, chairman and CEO of FINRA, said, “we fully support moving to a fiduciary duty for broker-dealers when providing investment advice.”

“We believe a fiduciary standard should attempt to eliminate conflicts, but where conflicts can’t be eliminated, they should be properly and clearly disclosed to customers,” he added, pledging to work closely with the U.S. Securities and Exchange Commission on the implementation of a fiduciary duty for broker-dealers “in a way that recognizes the value in being able to access a variety of models and products but doesn’t restrict firms’ activity.”

On the subject of disclosure, Ketchum said, “We think the time is right to ensure that customers receive more plain English disclosure about products from broker-dealers, and disclosure about brokerage services—including the conflicts of interest that a broker-dealer faces when offering these services.”

He also said there’s a need for more “Web-based, brochure-like disclosure that provides—in plain-English—information about conflicts and fees, and range of products. It is a fundamental building block of a single standard of care.” It is working on a proposal to ensure that brokers make this sort of upfront disclosure.

Additionally, Ketchum said that FINRA is taking a more risk-based approach to its compliance examinations. And, in the year ahead, those exams will be focusing on a couple of issues: fraud detection, and product suitability. The products it’s particularly concerned about include: private placements, particularly proprietary issues; municipal securities; and, structured products.