More States Advance Their Own Fiduciary Rules
January 29, 2019 by Bernice Napach
While the SEC’s pending best interest proposal is further delayed by the government shutdown, several individual states are moving ahead with their own fiduciary proposals.
Last Friday, Nevada Securities Division introduced a fiduciary rule to implement legislation that had passed in mid-2017, and is soliciting public comment until March 1. The proposed rule, however, allows the “Administrator” to adopt the SEC’s “fiduciary duty-related rule” so long as the SEC’s regulation “doesn’t materially diminish the fiduciary duty” included in the Nevada statutes.
The rule covers broker-dealers and sales representatives who provide investment advice, manage client assets, perform discretionary trading or otherwise establish a fiduciary relationship, and it defines BDs and sales reps to include even those who call themselves advisors, financial planners, financial consultants, retirement consultants, retirement planners, wealth managers, counselors or “other titles that the Administrator may by order deem appropriate.”
A broker-dealer or sales rep that calls themselves a financial planner or wealth manager would be subject to the fiduciary rule.
Click HERE to read the full story via ThinkAdvisor.
