NASAA Statement on SEC Study on the Obligations of Brokers, Dealers and Investment Advisers

WASHINGTON (January 24, 2011) – The following is a statement from David Massey, President of the North American Securities Administrators Association (NASAA) and North Carolina Deputy Securities Administrator, following the release of a study by the Securities and Exchange Commission staff examining the obligations of brokers, dealers and investment advisers as required under Section 913 of the Dodd-Frank Wall Street Reform and Consumer Protection Act. The study is available on the SEC website here.

“The SEC staff recommendation to apply a fiduciary duty to broker-dealers who provide personalized investment advice about securities to retail customers will have a significant positive impact on investors.

“State securities regulators routinely see the financial devastation caused when the interests of investors do not come first. That is why NASAA has consistently urged policymakers to protect investors by requiring all who provide investment advice about securities to be held to the fiduciary duty currently applicable to investment advisers under the Investment Advisers Act of 1940.

“We look forward to assisting the Commission as it develops new rules to apply a fiduciary standard of care and loyalty to all who provide investment advice to ensure that this standard is as strong as the existing fiduciary duty of the Advisers Act.”

NASAA was founded in 1919 and is the voice of securities agencies responsible for grass-roots investor protection and efficient capital formation. Its membership consists of the securities administrators in the 50 states, the District of Columbia, Canada, Mexico and Puerto Rico.

For more information:
Bob Webster, Director of Communications

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