New Jersey plans on instituting its own fiduciary rule for broker-dealers operating in the state.
The plan "would impose a fiduciary duty on all New Jersey investment professionals, requiring them to place their clients' interests above their own when recommending investments," according to a press release from Gov. Phil Murphy's office.
The rule is being developed by the New Jersey Bureau of Securities, which has the authority to impose a uniform fiduciary standard through regulation. Legislative approval would not be required.
The bureau is expected to publish what it calls a "pre-proposal" in the New Jersey Register Oct. 15, allowing for 60 days of public comment. During that time, it will also hold two informal conferences to solicit public comment — on Nov. 2 and Nov. 19 — in Newark, at the Division of Consumer Affairs which includes the Bureau of Securities, says Lisa Coryell, a spokeswoman at the New Jersey Attorney General's Office, which presides over the Division of Consumer Affairs.