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As states clash with feds over fiduciary, regulation jitters rise

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By Kenneth Corbin

Originally published on Financial Planning

First the Labor Department’s fiduciary rule collapsed. Then the SEC proposed Regulation Best Interest, a new broker regulation that left many investor advocates wanting more.

The federal government’s failure to rally behind a uniform fiduciary standard for brokers and advisors left a vacuum that lawmakers in a variety of states are looking to fill with their own rules for the wealth management sector.

But some worry that state efforts will add an unwelcome new layer of regulation and impinge on SEC-registered advisors.

In Nevada, regulators are considering a proposal for a uniform fiduciary standard that would apply in equal measure to brokers and advisors, offering only a limited exemption for certain kinds of brokerage activity. To the Investment Adviser Association, a group that represents federally registered advisors, that could be an unwelcome new layer of regulation for its members, who already must comply with the fiduciary standard under the Investment Advisers Act.

Read the full article on Financial Planning.

Dan Moisand

 

Dan Moisand is a nationally recognized fiduciary fee-only financial planner, an Institute Real Fiduciary™ Advisor and Chair-elect of the CFP Board.

The Institute has enshrined the ‘Moisand Rule’ on fiduciary practices. It is basic and is more important today than ever: “You have to avoid conflicts. If I avoid a conflict, I don’t worry about it.”

Watch the video of Moisand speaking here.

Bob Veres

 

Bob Veres is a long term observer of financial planning. His Newsletter, “Inside information” Is a staple of leading planners. In the May edition he writes about fiduciary and the Institute.

"But a much bigger point is that the fiduciary standard—as Knut Rostad of the Institute for the Fiduciary Standard has pointed out—has been determined by the Supreme Court (1963 ruling) to be at the very heart of the Investment Advisers Act of 1940. It is the foundation of what it means to be an RIA registered with the SEC instead of a tipster or a tout."

- Bob Veres, Parting Thoughts ... The SEC's Own Compliance Culture