Nevada’s ‘Expansive’ Fiduciary Plan Shocks BDs, RIAs
January 29, 2019 by Melanie Waddell
The proposed fiduciary regulation issued by Nevada on Friday is sending shockwaves through the broker-dealer and registered investment advisor communities, according to ERISA attorneys Fred Reish and Brad Campbell of Drinker Biddle & Reath.
The Nevada proposal has “really surprised the regulated community,” particularly broker-dealers, said Reish, a partner and head of Drinker Biddle’s ERISA Financial Services Group, on the law firm’s Inside the Beltway webcast on Thursday.
“I think it’s fair to say [the Nevada plan] is a much more expansive and broad rule than most observers were expecting,” added Campbell, the former head of the Labor Department’s Employee Benefits Security Administration, who’s a Drinker Biddle partner located in Washington.
After a quick read of Nevada’s plan, Reish added, the “biggest difference” he sees between the Nevada proposal and the Securities and Exchange Commission’s proposed Regulation Best Interest is that Nevada’s proposal includes a “private right of action.”
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