Skip to main content
Anya Coverman testified at a New Jersey Bureau of Securities hearing on a proposal to establish a fiduciary standard for all registered investment professionals in the state of New Jersey. Read the full transcript of the testimony here.
Our testimony highlighted several key issues from the recent IPA comment letter:
  • The IPA is concerned about the “best of” standard used in the proposal, and believe it creates uncertainty and liability for financial firms. We are urging the Bureau to remove the “best of” language.
  • The IPA is concerned that an ongoing fiduciary duty applies to a broker-dealer that “provides, in any capacity, investment advice” to the customer. We suggest that the financial professional disclose the duty in which they are acting, and that the broker-dealer’s duty apply only through execution of the recommendation.
  • The IPA encourages the Bureau to review the additional investor protections under SEC Regulation Best Interest, and urges the Bureau to consider a working session with financial firms in New Jersey to understand these new requirements.
The IPA will continue to discourage state-based fiduciary regulation simultaneous with the new SEC Best Interest rule, as conflicting federal and state requirements create confusion and uncertainty for firms, financial professionals and their clients.