New Jersey

Waiting for the next (state) shoe to drop

What’s in a title?

Why states have opted to “Go Your Own Way” on fiduciary standards re. broker-dealers and investment advisers

Over the past 2 years, the states have taken disparate approaches to filling what they perceive as a regulatory void when the DOL Fiduciary Rule was struck down by a federal court. At the outset, most states, with the exception of Nevada, took a disclosure-based approach (most notably, NY and NJ), and legislation was the preferred avenue. Now, the trend is toward heightening the standard of care (disclosure appears to be viewed skeptically) through regulation (executive/governor’s branch). Though it varies by state, there at times can be incongruity of approach taken within a state. For example, the New Jersey legislation favored disclosure, whereas Governor Murphy preferred a new standard of care. Though the New Jersey legislation is unlikely to be reintroduced next year, it highlights a risk for market participants when there is inconsistency intrastate and interstate. We are expecting to see draft bills over the coming months for the next session in a small handful of states, but will also keep a (very) close eye on if and when either or both of New Jersey and Massachusetts decide to move forward with their fiduciary duty regulations applicable to broker-dealers and investment advisers. Nevada is also likely to be moving forward with finalization on its proposed fiduciary implementing regulation.

All eyes on New Jersey as some call for delay of uniform fiduciary standard

New Jersey holds public hearing on its uniform fiduciary duty proposal

Reminder re. NJ’s uniform fiduciary duty proposal

Two things to remember re. the NJ uniform fiduciary duty proposal:

  1. A public hearing on the proposal will be held on July 17 from 9:30 am to 4:30 pm in the Morris Room at the Division of Consumer Affairs, 124 Halsey Street, 6th Floor, Newark, NJ 07101.
  2. The comment period has been extended to July 18.

How fiduciary/best interest rules are affecting advisers

Are the states beginning to coalesce around a broker-dealer standard of care approach?

New Jersey extends comment period for fiduciary proposal; schedules hearing

Two developments re. the NJ uniform fiduciary duty proposal:

  1. The comment period has been extended to July 18.
  2. A public hearing on the proposal will be held on July 17 from 9:30 am to 4:30 pm in the Morris Room at the Division of Consumer Affairs, 124 Halsey Street, 6th Floor, Newark, NJ 07101.