State Regulators Begin Imposing Fiduciary Standards on BDs and IAs

Broker-dealers (“BDs”) and investment advisers (“IAs”) have witnessed a flurry of regulatory activity in recent years aimed at defining the duties each owes to its customers and clients and establishing civil and/or regulatory liability for a failure to fulfill those obligations.

At the federal level, the DOL’s fiduciary rule is now defunct and the SEC’s Regulation Best Interest appears far from implementation.  The states’ securities regulators, however, are plowing ahead.  Recently, Nevada released its long-anticipated proposed fiduciary duty rules (the “Proposed Rules”).[1]  A similar release from New Jersey is expected soon with more states, such as Maryland and Illinois, poised to weigh in as well.

Nevada’s Proposed Rules may influence forthcoming regulation by other state and federal regulators.  A Legal Alert detailing the Proposed Rules and their implications for BDs and IAs required to be registered in Nevada, and their representatives, can be found here.

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

 Lauren Jackson is counsel and John I. Sanders and Ali Fenno are associates based in the firm’s Winston‑Salem office.

[1]  Notice of Draft Regulations and Request for Comment, State of Nevada, Office of the Secretary of State (Jan. 18, 2019),



Latest Thinking

View more Insights
Insights Center
Knowledge assets are defined in the study as confidential information critical to the development, performance and marketing of a company’s core business, other than personal information that would trigger notice requirements under law. For example,
The new study shows dramatic increases in threats and awareness of threats to these “crown jewels,” as well as dramatic improvements in addressing those threats by the highest performing organizations. Awareness of the risk to knowledge assets increased as more respondents acknowledged that their