Federal securities laws prohibit trading securities on the basis of insider information. Financial planners have a legally-binding, fiduciary responsibility to act in their clients' best interests.

Supposed Bob is a Financial Planner. He is friends with Jill, an Executive at Company X, and they regularly talk business, including information about Company X. This information may or may not be relevant. Either way, Jill is very guarded and careful about what she says about Company X.

Bob has also done significant, independent research on Company X and its financials and the planner believes Company X is a great investment for his clients' portfolios under management with great growth potential.

Does Bob have a fiduciary duty and legal and moral responsibility to recommend Company X to his clients, or is he violating federal securities laws regarding insider information? To what extent is Bob's legal obligation to his clients greater or lesser than those regarding insider information