State Fiduciary Rules on a ‘Collision Course’ With Reg BI: Lawyers
August 1, 2019 by Melanie Waddell
States contemplating their own fiduciary rules “are on a collision course with where the federal law [under the SEC’s Reg BI] is going, which is going to set up some very difficult debates and probably some litigation,” Brad Campbell, former head of the Labor Department’s Employee Benefits Security Administration, who’s now a partner at Drinker Biddle in Washington, said on a Thursday call.
Massachusetts has issued “a very similar” regulation to the one issued by New Jersey, Campbell said on Drinker Biddle’s Inside the Beltway call, with both states calling for a uniform fiduciary standard. “They would both put in place some rather troubling, in my view, restrictions that would have pretty negative effects on the availability of transacting compensation.”
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