New Jersey fiduciary rule: Time to speed up or slow down?
May 21, 2019 by Andrew Welsch
New Jersey is currently taking comment on its proposed fiduciary rule, after years of public debate over federal and state regulator’s efforts to craft a higher standard for brokers and advisors. But the state may be moving too quickly, industry insiders warn.
The American Securities Association — an industry trade group representing regional broker-dealers — is calling on the state’s Bureau of Securities to hold new public hearings to prevent the regulation from wreaking havoc in unforeseen ways.
The bureau’s fiduciary rule “would fundamentally alter the relationship that currently exists between broker-dealers and their retail clients in the state of New Jersey and this could have a negative impact on the state’s finances,” Christopher Iacovella, CEO of the American Securities Association, said in a comment letter to the regulator.