The American Securities Association has a few words for New Jersey: go public before you go big.
The financial services trade group is a voice for regional broker-dealers. They’re urging the Garden State’s Bureau of Securities to have public public hearings around their proposed fiduciary rule. The hope? That the proposal will never see the light of day.
After the DOL Fiduciary Rule was struck down in federal appeals court, several states began a quest to have it reincarnated. New Jersey’s proposal goes beyond the SEC’s Regulation Best Interest.
While investor advocates are in favor of New Jersey’s rule, the American Securities Association wrote to the New Jersey regulator to warn against “regulatory costs, compatibility with federal regulations and the length of the proposed implementation period.”
Christopher Iacovella, CEO of the American Securities Association, states that a public hearing by the bureau will allow citizens and industry folk alike to discuss these questions.
The American Securities Association is one more player in the tug-of-war between states reigniting the fiduciary rule and broker-dealer opposition. In Nevada, another state working to bring back a semblance of the fiduciary rule, Morgan Stanley and other brokerage firms have warned they’ll leave if the rule comes to pass.
New Jersey’s regulator will be hearing public comments until June 14th.
