ADISA Submits Comment Letter to Massachusetts Securities Division Re: Proposed Fiduciary Regulations

Jan 03, 2020

ADISA submitted a letter earlier this week to the Massachusetts Securities Division in response to their request for comments on the proposal to amend 950 Mass. Code Regs 12.200 as they relate to the standard of conduct applicable to broker-dealers, agents, investment advisers and investment adviser representatives. ADISA's comment letter encourages the Division to consider the following:

  1. "Non-traded" investment products are distinct from their publicly-traded counterparts and are typically marketed and sold in a different way.
  2. ADISA applauds the division for recognizing an episodic duty, similar to the State of Nevada.
  3. The Division should add greater clarity to the scope and application of the duty of due care. 
  4. Recognizing the unique nature of the alternative marketplace, the Division should add greater clarity to the "best of" language.
  5. The proposal should explicitly limit its application to retail investors who are legal residents of Massachusetts or who reside in Massachusetts. 
Signed by 2019 ADISA President Greg Mausz, the letter was drafted by John Grady and Thomas Rosenfield of ADISA's Legislative & Regulatory Committee. You can read the letter in its entirety here

John Grady will also speak on behalf of ADISA at the Division's public hearing on the proposed amendments in Boston on January 7, 2020.