FSI Responds to Massachusetts State Fiduciary Rule Proposal that Restricts Investor Choice & Access

‘Significant concerns’ about the impact on Main Street investors

WASHINGTON, D.C. – Massachusetts Secretary of the Commonwealth William Galvin has signed off on a proposed rule that would impose a fiduciary conduct standard for broker-dealers, agents, investment advisers and investment adviser representatives providing financial advice to clients in the Commonwealth.


Below is a statement from Financial Services Institute (FSI) President & CEO Dale Brown:

“Based on the initial proposal, we have significant concerns about the impact that Massachusetts’ fiduciary rule will have on Main Street investors in the Commonwealth who are working to achieve their financial goals. The SEC’s Regulation Best Interest (Reg BI) establishes a national standard that enhances investor protection while preserving access to professional financial advice. Massachusetts’ proposal creates differing requirements from those established by Reg BI. This will ultimately limit services and drive up costs for investors through increased confusion and higher compliance costs for financial advisors. Our members are diligently working toward compliance with Reg BI, and we strongly encourage Massachusetts to align its requirements with those of the SEC and other existing regulations. We stand ready to work with the Securities Division on a solution.”

About the Financial Services Institute (FSI):
The Financial Services Institute (FSI) is the only organization advocating solely on behalf of independent financial advisors and independent financial services firms. Since 2004, through advocacy, education and public awareness, FSI has successfully promoted a more responsible regulatory environment for more than 100 independent financial services firm members and their 160,000+ affiliated financial advisors – which comprise over 60% of all producing registered representatives. We effect change through involvement in FINRA governance as well as constructive engagement in the regulatory and legislative processes, working to create a healthier regulatory environment for our members so they can provide affordable, objective advice to hard-working Main Street Americans. For more information, please visit financialservices.org.