Massachusetts’ Galvin Posts Revised Fiduciary Rule
December 10, 2019 by Alex Padalka
Massachusetts’ top securities watchdog has unveiled an amended regulation that would hold broker-dealers as well as investment advisors operating in the state to the fiduciary standard.
The Massachusetts Securities Division of the Office of the Secretary of the Commonwealth had sought comments on a proposal for a state fiduciary standard in June, ending the comment period in July. Last Friday, Massachusetts’s Secretary of the Commonwealth William Galvin unveiled his fiduciary conduct standard for broker-dealers, agents, investment advisors and investment advisor representatives working with clients in the state, as reported.
The regulation would have required financial recommendations and advice to be based on the best interest of the clients.
“I am proposing this standard because the SEC has failed to provide investors with the protections they need against conflicts of interest in the financial industry with its ‘Regulation Best Interest’ rule,” Galvin said at the time in a statement.
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