Unfazed that the Department of Labor (DOL) fiduciary rule has been rendered moribund, the Garden State is forging ahead with its own.
The 5th Circuit Court of Appeals may have essentially struck down the federal rule, but that has nothing to do with the ability of the states to craft and implement similar rules of their own. And New Jersey is doing just that. Gov. Phil Murphy has announced plans to issue a rule strengthening the standards for investment professionals in New Jersey.
The New Jersey Bureau of Securities is initiating work on the standards, which would impose a fiduciary duty on all New Jersey investment professionals and require them to place their clients’ interests above their own when recommending investments.
“New Jersey is pursuing state-level regulatory reforms that would enhance the integrity of its financial services industry by holding every investment professional to the highest standard under the law,” said Murphy. Paul R. Rodríguez, Acting Director of the Division of Consumer Affairs, remarked, “We are exercising our authority to initiate the first of many actions that will serve as the building blocks of a robust state-level consumer financial protection framework to safeguard the interests of all New Jersey residents.”
New Jersey Bureau of Securities Chief Gerold will issue a Notice of Pre-Proposal to seek public input on the proposed rule.
The 5th Circuit Court of Appeals may have essentially struck down the federal rule, but that has nothing to do with the ability of the states to craft and implement similar rules of their own. And New Jersey is doing just that. Gov. Phil Murphy has announced plans to issue a rule strengthening the standards for investment professionals in New Jersey.
The New Jersey Bureau of Securities is initiating work on the standards, which would impose a fiduciary duty on all New Jersey investment professionals and require them to place their clients’ interests above their own when recommending investments.
“New Jersey is pursuing state-level regulatory reforms that would enhance the integrity of its financial services industry by holding every investment professional to the highest standard under the law,” said Murphy. Paul R. Rodríguez, Acting Director of the Division of Consumer Affairs, remarked, “We are exercising our authority to initiate the first of many actions that will serve as the building blocks of a robust state-level consumer financial protection framework to safeguard the interests of all New Jersey residents.”
New Jersey Bureau of Securities Chief Gerold will issue a Notice of Pre-Proposal to seek public input on the proposed rule.
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