New Jersey Fiduciary Rule Creates Uniform Standard for BDs, IAs

On Monday, April 15, the New Jersey Bureau of Securities released its long-awaited proposed fiduciary rule (the “Proposed Rule”) for broker-dealers (“BDs”) and investment advisers (“IAs”). We have released a Legal Alert, available here (the “Alert”), that summarizes the Rule Proposal’s key points. As discussed in the Alert, the Proposed Rule essentially establishes a uniform fiduciary standard for IAs, investment adviser representatives, and most BDs and BD agents doing business (i.e., providing investment advice or soliciting trades) in New Jersey with clients that have less than $50 million in assets.

If you have any questions about the contents of the Alert or about the regulation of BDs and IAs generally, please feel free to contact us.

By the Investment Management and Broker-Dealer Team at Kilpatrick Townsend & Stockton


Footnotes

New Jersey Division of Consumer Affairs, Bureau of Securities, Proposed Rule: Fiduciary Duty of Broker-Dealers, Agents, Investment Advisers, and Investment Adviser Representatives, 51 N.J.R. 493 (April 15, 2019), https://www.njconsumeraffairs.gov/Proposals/Pages/bos-04152019-proposal.aspx.

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