Published: June 2019

New Jersey steps up to protect investors from predatory products and advice

New Jersey’s Bureau of Securities announced a proposal that would impose a fiduciary duty on anyone giving investment advice, including brokers. Advocates greatly appreciate states such as New Jersey that are willing to step in to fill the regulatory void by providing the protections investors need and expect. New Jersey is one of several states, including Nevada and Massachusetts, seeking to set their own investment advice standards.

A new rule proposed by the New Jersey Bureau of Securities would require all financial advisors registered in the state to act as fiduciaries, making New Jersey one of the first states to propose a uniform fiduciary standard for all financial services professionals.

The rule would cover recommendations on investments; opening or transferring assets into any kind of account; and the purchase, sale or exchange of any security. A broker or advisor must make “reasonable inquiry” in the best interest of their client, and any recommendations offered cannot be made with regard to a financial interest of the broker, advisor or any other third party.

Lead Organization

Save Our Retirement

Other Organizations

Alliance for Retired Americans | Americans for Financial Reform Education Fund | Better Markets | Center for American Progress | Center for Economic Justice | Consumer Action | Consumer Federation of America | Committee for the Fiduciary Standard | EPI Policy Center | Fund Democracy | Make the Road New Jersey | National Employment Law Project | New Jersey Citizen Action | New Jersey Policy Perspective | NJ NAACP | NJPIRG | Woodstock Institute

More Information

For more information, please visit Save Our Retirement.

Download PDF

New Jersey steps up to protect investors from predatory products and advice   (Investor_groups_comment_in_support_of_NJ_fiduciary_proprosal.pdf)