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New Jersey to Create its Own Fiduciary Rule

Unfazed by the Trump administration’s acquiescence to the 5th U.S. Circuit Court of Appeals’ ruling vacating the DOL’s fiduciary rule, the Garden State is forging ahead with its own standard.

New Jersey Gov. Phil Murphy (D) announced plans Sept. 17 to issue a rule strengthening the standards for investment professionals in the state.

The New Jersey Bureau of Securities is initiating work on the standard, which would impose a fiduciary duty on all New Jersey investment professionals and require them to place their clients’ interests above their own when recommending investments.

“New Jersey is pursuing state-level regulatory reforms that would enhance the integrity of its financial services industry by holding every investment professional to the highest standard under the law,” said Murphy. Paul R. Rodríguez, Acting Director of the Division of Consumer Affairs, remarked,“We are exercising our authority to initiate the first of many actions that will serve as the building blocks of a robust state-level consumer financial protection framework to safeguard the interests of all New Jersey residents.”

According to the announcement, New Jersey Bureau of Securities Chief Gerold will issue a Notice of Pre-Proposal to seek public input on the proposed rule.