Galvin’s Fiduciary Rule Faces a Business Community Backlash
October 2, 2019 by Patrick Donachie
A fiduciary rule proposed by Massachusetts Secretary of the Commonwealth William Galvin is making waves among Boston business advocates, according to a new report from the Boston Globe. Today, the Greater Boston Chamber of Commerce will email chamber members and policy brief subscribers about the organization’s opposition to Galvin’s attempt to create a more stringent standard for broker/dealers, arguing it risks instilling a chilling effect on brokers in the Bay State.
Shortly after the Securities and Exchange Commission finalized its Regulation Best Interest rule on June 5, Secretary Galvin announced he was seeking public comments on a regulation that would introduce a fiduciary standard for Massachusetts b/ds. In a statement on June 14, Galvin, who has long been known as a fierce advocate for investor protection, directly connected the announcement to Reg BI, arguing states may need to take the lead in lieu of what he argued was weak federal regulation.