National Association of Insurance and Financial Advisors

NAIFA-New Jersey Testifies on State Fiduciary Proposal

Dennis Cuccinelli testified today on behalf of the New Jersey chapter of the National Association of Insurance and Financial Advisors (NAIFA) at a public conference held by the New Jersey Bureau of Securities. The conference, in Newark, is part of the rulemaking process on a pre-proposal to impose fiduciary requirements on broker-dealers, agents, investment advisers, and investment adviser representatives in the state.
Cuccinelli is an independent financial advisor practicing in Edison, N.J. He has held several leadership positions with NAIFA-New Jersey and is a member of NAIFA’s national Government Relations Committee.
He testified before the Bureau that New Jersey should not move too quickly to implement a fiduciary standard for advisors. The federal Securities and Exchange Commission has begun a rulemaking process to create a best interest standard for advisors, and New Jersey consumers would be better served if the state waited for the SEC to complete that process.
“NAIFA-New Jersey feels that the Bureau of Securities would be making a mistake if it were to promulgate regulations that would most certainly differ from those being considered by the SEC, before the SEC has completed its rule making process,” Cuccinelli said in his written statement to the Bureau. “By moving forward with regulations, the Bureau of Securities will be creating a crisis. What are advisors to do when federal and state requirements conflict with each other and advisors are placed in the difficult, if not impossible, position of deciding how to comply with the differing and conflicting requirements?”
Cuccinelli testified that a state fiduciary rule would likely limit middle-market investors’ access to financial products and professional advice and services.
  • Posted November 19, 2018 IN

Blog post currently doesn't have any comments.