State-Level Fiduciary Rules Will Face Barrage of Litigation
March 27, 2019 by Alex Padalka
As a subcommittee of the House Financial Services Committee gets ready to hear testimony on the SEC’s proposed regulations on broker and investment advisor conduct today, several states are pushing ahead with state-level fiduciary rules — but they’ll likely face challenges in the courts, according to news reports.
New York state legislators have recently introduced a bill that would require brokers to disclose point-blank that they’re not fiduciaries and therefore don’t need to act in the client’s best interest, the Intercept writes. Nevada, New Jersey and Maryland have similar fiduciary proposals in the works — and even more states may follow suit, Barbara Roper, director of investor protection at the Consumer Federation of America, tells the web publication.
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