FSI Responds to Massachusetts Fiduciary Rule Release

Today, the Massachusetts Securities Division released its final fiduciary standard for those providing financial advice or recommendations in the Commonwealth. Below is a statement from Financial Services Institute (FSI) President & CEO Dale Brown:

“We are thoroughly reviewing the rule and hope that the Securities Division has made revisions to address the concerns we previously expressed through our comments and testimony. However, the speed with which the Securities Division moved this proposal to a final rule is deeply concerning, particularly given the significant number of comments submitted which merited careful consideration. Massachusetts investors’ access to the same selection of financial advice, products and services as the rest of the country is at stake. Limiting these options puts constraints on their ability to achieve their financial goals. In addition, the rule will likely raise the cost of financial advice for the Commonwealth’s investors and lead to confusion for both financial professionals and investors due to differing standards of care.

“Throughout this process, we have urged the Massachusetts Securities Division to wait until after the implementation of the SEC’s Regulation Best Interest (Reg BI) in the coming months. Our members are diligently working toward compliance with Reg BI, and we are confident it will greatly enhance investor protection.”

Earlier this year, FSI submitted a comment letter to the Massachusetts Securities Division and provided testimony outlining its concerns about the fiduciary rule proposal.