Nevada Fiduciary Rule Would Scare Off Morgan Stanley, TD Ameritrade
March 19, 2019 by Melanie Waddell
Two of the nation’s top brokerage firms — Morgan Stanley and TD Ameritrade — are warning the Nevada Securities Division that if the state moves ahead with its fiduciary rule in its current form, they’ll stop serving customers in the state.
Meanwhile, Illinois appears to have halted moving ahead with its Investment Advisor Disclosure Act, which was introduced last year without any text. The act “has been designated session sine die,” according to George Michael Gerstein with Stradley Ronon, meaning it has not been assigned a “further meeting or hearing.”
Morgan Stanley told the Nevada Securities Division in its comment letter that its proposal “unnecessarily expands” the fiduciary duty described in Nevada’s Revised Statutes and that “‘episodic’ and ‘unsolicited transaction’ exemptions in their current form are far too narrow for firms to continue to offer Nevada investors cost-effective brokerage options.”
Without “substantial” changes to the state’s plan, Morgan Stanley said it would be “unable to provide brokerage services” to Nevada residents.
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