Last month, the New Jersey Bureau of Securities issued a pre-proposal for a uniform fiduciary standard, developed by the state, for broker-dealers, agents, investment advisers and investment adviser representatives in the state. The Bureau is also in the process of holding informal public conferences to take testimony from interested parties regarding the pre-proposal.
On November 2, the Financial Services Institute’s (FSI) Vice President of State Affairs, Michelle Carroll Foster, testified before the Bureau to share FSI’s opposition to state-specific fiduciary standards. The testimony highlighted FSI’s long-held position that the SEC is the appropriate agency to develop a uniform standard of care and that the SEC is currently in the process of finalizing its Regulation Best Interest. State-specific fiduciary standards would also impose additional compliance burdens and costs on financial advisors. These costs would be ultimately passed down to investors, which would result in limited access to professional advice for Main Street Americans.
FSI appreciates the opportunity to provide our testimony to the Bureau and look forward to working with them on this issue.