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The U.S. Securities and Exchange Commission on Wednesday voted to propose a package of rules and guidelines to improve broker-client relationships.

Under proposed Regulation Best Interest, a broker-dealer would be required to act in the best interest of a retail customer when making a recommendation of any securities transaction or investment strategy involving securities to a retail customer, the SEC says in a news release.

The proposed new rule aims to “make it clear that a broker-dealer may not put its financial interests ahead of the interests of a retail customer in making recommendations.”

The SEC also proposed guidance designed to clarify the regulator’s views of the fiduciary duties that investment advisors owe to their clients.

In addition, the commission proposed to restrict the use of the titles “advisor” and “adviser” by broker-dealers and their reps, in an effort to maintain the distinction between broker-dealers and advisors.

The SEC also proposed introducing a mandatory new disclosure document that sets out the terms of advisory relationships.

The new disclosure effort is being proposed to “help address investor confusion about the nature of their relationships with investment professionals,” the SEC says.

The proposals are intended to enhance investor protection by raising conduct standards, addressing conflicts of interest and improving disclosure, while also preserving the distinction between broker-dealers and investment advisory firms, the SEC says.

Kara Stein, SEC commissioner, voted against the proposals. They will not impose a genuine best interest standard on broker-dealers, she says, but will largely preserve the status quo.

“Unfortunately, today’s package of proposals in many ways continues to place the burden on the retail investor,” she says in a statement..

Nevertheless, the proposals will go out for a 90-day comment period once they are published in the Federal Register.

In Canada, most provincial regulators have resisted calls for the introduction of regulatory best interest standard. Only the Ontario Securities Commission (OSC) and New Brunswick’s Financial and Consumer Services Commission (FCNB) have pledged to develop a best interest standard for Canadian investors.