New Nevada law imposes fiduciary duty on brokers
The measure, effective July 1, requires advisers to disclose any “profit or commission” they receive and make a “diligent inquiry” about a client’s financial condition and goals
June 16, 2017 | by Mark Schoeff Jr. | InvestmentNews.com
Brokers in Nevada will have to meet a fiduciary standard when providing investment advice under a law that will take effect July 1.
The measure revises a current fiduciary law applying to “financial planners” that excluded brokers and investment advisers. The new law subjects brokers and advisers to the state’s fiduciary rule.
Brokers normally operate under a suitability standard enforced by the Financial Industry Regulatory Authority Inc. that requires them to sell products that fit a client’s risk tolerance, liquidity needs and investment objectives. Under the Investment Advisers Act…
