NEWS TIPS  ·   Advertise  ·   Post Jobs  ·   About Us  ·   Contact Us  ·   Log In  ·   Register

Click to Zoom
Print Email
Jun 28 2017

Trade Associations Urge Nevada Securities Administrator to Reconsider New Fiduciary Regulation

The Alternative & Direct Investment Securities Association, along with other financial services trade associations and companies, cosigned a letter to Nevada securities administrator Diana Foley regarding Senate Bill 383 that was signed earlier this month.

The new legislation, which goes into effect on July 1st, requires broker-dealers, investment advisers, and sales representatives to operate under a fiduciary duty previously reserved for financial planners and permits clients to pursue legal action against the broker-dealer and its agents.

The trade groups are requesting that Nevada delay implementation or make clear that compliance with existing FINRA and SEC requirements is deemed sufficient until the regulation is finalized.



The groups noted that “the industry has lots of questions ranging from what type of disclosure is required and how is that documented consistent with SEC requirements to what constitutes advice.”

The groups also suggested that the new law use FINRA Rule 2111 as its standard. FINRA Rule 2111 requires brokers to utilize the suitability requirement to make recommendations that are consistent with the customer’s best interest and prohibits brokers from placing their interests ahead of their customers.

The DOL fiduciary rule partially went into effect on June 9, but is currently under review at the direction of the President. The groups are asking the state to wait on the outcome of the fiduciary rule or build in language which would automatically update to become consistent with any future federal changes.

In addition to ADISA, the co-signers of the letter include the American Council of Life Insurers, Bond Dealers of America, Center for Capital Markets Competitiveness, Equity Dealers of America, Financial Services Institute, Insured Retirement Institute, Money Management Institute, and the Securities Industry and Financial Markets Association.

The letter can be read in its entirety here.

Click here to visit The DI Wire directory page.

Article by: The DI Wire


Share this article!

Print Email


Directory Spotlight





The DI Wire's Email Alerts