What Should be the Liabilities for the Banks Selling Trust Products?

Many parties have significant interests at stake when it comes to the liability of the bank which sells trust products on which issuers have defaulted. The bank selling the product should be liable. The bank owes investors fiduciary duty if it advises the investors on the purchase. The bank may also be liable as an underwriter if the trust product is defined as a security. In short, the bank which sells trust products or wealth management products should not be free from legal liabilities.