Massachusetts officials have released a proposed regulation that would impose a fiduciary duty on agents, broker-dealers, and investment advisors and their representatives when dealing with clients in the state. Secretary of State William F. Galvin commented, in unveiling the proposal, that the Securities and Exchange Commission’s (SEC) new “Regulation Best Interest” made the Massachusetts regulation necessary. “I am proposing this standard,” he said in a statement, “because the SEC has failed to provide investors with the protections they need against conflicts of interest in the financial industry with its ‘Regulation Best Interest’ rule. Investors must come first.”
A hearing on the proposed regulation will take place at some point in the future, according to Secretary Galvin. The proposal was put forward in a preliminary form during the summer of 2019.
Massachusetts joins several other states—including New York—that either have proposed or instituted fiduciary standards on agents and brokers. Further details are available HERE.