ADISA Submits Comment Letter and Petition to New Jersey Bureau of Securities Regarding Proposed Fiduciary Duty of Broker-Dealers and Investment Advisers

Jun 14, 2019

ADISA submitted a letter today to the New Jersey Bureau of Securities’ request for comments on the state’s draft fiduciary duty regulations. ADISA's comment letter encourages the Bureau to consider the following as it develops its final regulation:

  1. “Non-Traded” or non-marketable investment products are distinct from their publicly traded counterparts in many respects, including cost, liquidity and complexity.
  2. The Bureau should add the State of Nevada Security Division’s Episodic Fiduciary Duty.
  3. The Bureau should add greater clarity to the "best of" language contained in Subsections (b)2i and (b)3 of the Proposed Rule, providing understanding to retail customers and fair notice of actual requirements to financial professionals.
  4. The Proposal should explicitly limit its application to retail investors who are legal residents of New Jersey or who reside in New Jersey.

Signed by ADISA President Greg Mausz, the letter was drafted by Mausz, John H. Grady and Thomas Rosenfield of ADISA’s Legislative & Regulatory Committee. You can read the letter in its entirety here.

In addition to the letter, ADISA submitted a petition from its members in New Jersey further echoing our message.