Some industry advocates are requesting the SEC write a clear provision explaining that the SEC's rules preempt competing state fiduciary rules. Others have said that differing state and federal security regulations have a long history of coexisting. (Photo: Diego M. Radzinschi/ALM)
As the Securities and Exchange Commission enters the final stretch in its effort to finalize rules that would elevate and clarify broker-dealers' and investment advisors' responsibilities to retail investors, questions are being raised as to how its regulations would coexist with state securities laws.
In January, the Securities Division within Nevada's Secretary of State office released a draft regulation of a fiduciary rule that includes provisions for broker-dealers that some say are more stringent than the SEC's proposed Regulation Best Interest.
Nevada's proposal includes a private right of action, giving investors the right to bring fiduciary breach claims in state court. The SEC's proposal does not include a new private right of action.
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Nick Thornton
Nick Thornton is a financial writer covering retirement and health care issues for BenefitsPRO and ALM Media. He greatly enjoys learning from the vast minds in the legal, academic, advisory and money management communities when covering the retirement space. He's also written on international marketing trends, financial institution risk management, defense and energy issues, the restaurant industry in New York City, surfing, cigars, rum, travel, and fishing. When not writing, he's pushing into some land or water.
