Washington, D.C., partner Brad Campbell was quoted in a Pensions & Investments article titled “Maryland Consumer Protection Bill Includes Fiduciary Duty Provision.” The article discusses The Financial Consumer Protection Act of 2019, which was recently introduced by Maryland lawmakers. The bill contains a fiduciary provision that would compel broker-dealers, insurance agents and investment advisers to act in the best interest of the customers "without regard to the financial or other interest of the person or firm providing the advice."
Brad stated that states crafting their own fiduciary rules will not "serve anybody's interest well if we end up with a patchwork of slightly different legal requirements and remedies that vary from state to state."
Brad noted that he would prefer states wait for the SEC to issue a final rule before moving forward on their own. "The SEC is the midst of doing substantive rulemaking," Brad said. "It's not as though there isn't anything happening here and the states are running the risk of really jumping the gun here in a way that's not going to be helpful for ordinary consumers of financial advice."