Barron’s: Brokerage Industry Targets State Fiduciary Rules

“The creation of overlapping, duplicative or potentially conflicting requirements could create serious issues for the industry’’ and would “likely lead to increased investor confusion and undermine the intent of federal law,” the trade groups wrote in a letter.

The groups, which include the U.S. Chamber of Commerce, Sifma, and the American Securities Association, also said the New Jersey proposal conflicts with federal law.

In addition to the Garden State, Nevada is working on a fiduciary rule, and on Friday, Massachusetts’ Office of the Secretary of the Commonwealth, which regulates the securities industry, announced its own proposal for a fiduciary rule for brokers. Massachusetts said that although the Dodd-Frank legislation authorized the SEC to establish a broker rule as tough as the one that applies to RIAs, the SEC’s finalized regulation “fails to establish a strong and uniform fiduciary standard.”

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