Conflicting rules and regulatory regimes that govern the way
broker-dealers advise their clients could prove problematic
unless there is some form of coordination between states and
As it stands, the Securities and Exchange Commission (SEC),
the Department of Labor (DoL) and a number of individual states
have proposed or implemented separate rules outlining
broker-dealers' fiduciary responsibilities, but it remains
uncertain how they will function together.
This month the SEC voted to adopt Regulation Best Interest
(BI), which was "designed to enhance the quality and
transparency of retail investors’ relationships
with investment advisers and broker-dealers". This rule came as
a replacement for the defunct Fiduciary Standard Rule, which
was imposed and then killed by the DoL.
Following the death of the fiduciary rule, New Jersey
introduced its own version of a fiduciary regulation, and
similar measures have also been advanced in Maryland,
Connecticut and New York. In January Nevada...