The New Jersey Bureau of Securities held its second session for testimony on the state’s pre-proposal that would require brokers and advisors to be subject to a fiduciary duty. Fiduciary advocates as well as brokerage industry representatives presented their thoughts.
A number of states, frustrated with the federal government’s efforts, are taking up the fiduciary flag on their own.
Knut Rostad, president of The Institute for the Fiduciary Standard, said New Jersey has the opportunity to create a stronger best interest standard than the one the Securities and Exchange Commission is currently working on.
“We are on the verge of enacting a suitability-type standard federal rule that holds out as fiduciary,” he said in his testimony. “New Jersey has a unique opportunity to make an important difference in the journey of fiduciary duties in the early 21st century.”