ThinkAdvisor: Trade Groups Press New Jersey to Adopt SEC’s Reg BI, Drop Fiduciary Plan
The American Securities Association also urged New Jersey to adopt Reg BI.
“New Jersey should adopt the SEC’s national Reg BI standard and not create a patchwork of unworkable state regulations that would only cause confusion across the financial industry and harm New Jersey residents saving and investing for a better future,” said ASA CEO Chris Iacovella.
ASA, Iacovella wrote, believes the “standards laid out in the New Jersey Proposals directly undermine the consumer protections set forth in Reg BI’s national best interest standard. Adopting a different approach from the SECs national standard will confuse residents, financial professionals, and firms in New Jersey.”
Industry officials and attorneys have also been debating the impact of the SEC choosing not to state whether Reg BI preempts state law.
ASA’s Iacovella told ThinkAdvisor in an email that the SEC “did not have to say Reg BI specifically preempts state law; it is the only entity charged by statute with creating and enforcing the securities laws across the United States. The purpose of the Exchange Act and the Securities Act was to give the SEC the power to create and regulate a national market so that businesses did not have to comply with laws in 50 different states.”
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