News | 09.09.19
When New Investor-Protection Rules Come Up Short, States Step In
Some states are filling in gaps in investor protection rules following the invalidation of the U.S. Labor Department fiduciary rule and enactment of new SEC conduct rules in its place. Complaints against brokers for breaching a fiduciary duty aren't uncommon. So far this year, there have been 1,138 arbitration cases—about half the number of new cases filed at FINRA this year—alleging such a violation. Nevada, Massachusetts, and Florida have relatively strong securities laws in place, attorneys say, while other states, including New Jersey, Connecticut, and New York, have taken steps to implement versions of a fiduciary standard for some types of accounts and products. Critics have suggested the SEC's Best Interest Rule would pre-empt any individual state rules, but some attorneys disagree.
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