The Maryland Senate Finance Committee will hold a hearing on Thursday afternoon regarding legislation, S.B. 1068, the Financial Consumer Protection Act of 2018, that includes provisions to classify broker-dealers and investment advisors as fiduciaries.
That state’s House also introduced companion legislation, H.B. 1634, but the Financial Services Institute says that it has “worked with both sponsors to amend the bill to remove the fiduciary provisions.”
FSI also submitted letters of opposition to the Maryland legislature, attended the House Economic Matters Committee meeting on Feb. 16 and followed up with Senators to discuss FSI’s concerns on the Senate bill, “including investor confusion created by various standards set by state and federal regulators.”
David Bellaire, FSI’s executive vice president and general counsel, said in an emailed statement to ThinkAdvisor that FSI has “long supported a federal uniform fiduciary standard of care for all retail financial advice. However, individual state legislation on this issue will lead to duplicative regulation, investor confusion, legal conflicts and compliance challenges without providing additional investor protection benefits.”