New Jersey and Massachusetts Fiduciary Proposals

New Jersey proposed a rule in April that would apply a fiduciary duty to all brokers and advisors registered with the NJ Bureau of Securities – including advice around the opening of or transfer of assets to any type of account. While the proposal applies to the sale of securities, it does not apply to the sale of life insurance and annuity products. AALU submitted comments on June 14th, and there is a public hearing on July 17th. We are coordinating with our partners on testimony.

Massachusetts is the most recent state to join in these efforts, issuing a standard of conduct proposal on June 14th. It mirrors the New Jersey proposal in that it applies a fiduciary duty to all brokers and advisors selling securities products, but does not apply to the sale of life insurance and annuity products. We are currently analyzing the proposal and will provide comments.

AALU NJ Comment Letter

New Jersey Proposal Text

Massachusetts Proposal Text

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