After a preliminary comment period, Massachusetts Secretary of State William Galvin — the state’s top securities regulator — has signed off on the state’s fiduciary rule.
”There will now be a formal comment period and hearing before the regulations can be promulgated,” a spokesperson for Galvin’s office told ThinkAdvisor early Monday.
The rule, which Galvin proposed in mid-June, would apply a fiduciary conduct standard on broker-dealers, agents, investment advisors and investment advisor representatives when dealing with clients.
Galvin said in a statement that he’s proposing the standard because the Securities and Exchange Commission “has failed to provide investors with the protections they need against conflicts of interest in the financial industry” with its Regulation Best Interest rule.
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“My office has seen firsthand the serious financial harm that investors and savers have suffered as a result of conflicted financial advice,” Galvin added. “Investors must come first.”