Sloppy Due Diligence?

Here is another article about the broker-dealer's due diligence responsibility.  The thrust of the piece is that due diligence must be conducted independently of the issuer.  It takes time, effort and documentation, and may involve some expense.  Using third party experts paid by the issuer can be a part of the process, but it does not satisfy the responsibility for direct investigation.

What has not been tested is the responsibility of the independent RIA in establishing the reasonable basis for a recommendation.  Many suggest that the responsibility is the same as that of a broker-dealer.  Now may be a good time consider whether this responsibility is being met.