There are concerns that the growing trend of individual
states within the US to introduce fiduciary standards in lieu
of the Department of Labor's (DoL) near-defunct rule could lead
to unnecessary confusion for investors. The Securities and
Exchange Commission's (SEC) own best interest standard
regulation is yet to be finalised, and although a priority for
the commission it may be some time before it passes.
Last year New Jersey introduced its version of a fiduciary
regulation, and similar measures have been advanced in
Maryland, Connecticut and New York. More recently, on January
18, the state of Nevada issued proposals for its own set of
rules that govern how investors are able to advise clients.
Given that a federal law stipulating similar fiduciary
protections has been introduced and is awaiting congressional
approval, the potential grey areas pertaining to state vs
federal regulation are significant, and could prove
problematic. With the government...