Murphy unveils fiduciary duty for NJ’s investment brokers
TRENTON, N.J. (AP) — New Jersey Gov. Phil Murphy says he’s pushing for a new rule to protect the state’s investors.
The Democrat said in a statement Monday his administration will pursue a regulation to impose a fiduciary duty on broker-dealers.
Murphy says most consumers assume that financial professionals are required to give unbiased advice but that’s not the case under federal rules.
Only investment advisers carry such a duty, but broker-dealers do not.
The freshman governor says most investors don’t realize broker-dealers often get undisclosed financial benefits for steering clients toward particular investments.
Murphy says he’s pushing for the rule in response to the Trump administration’s dismantling of a fiduciary obligation that originated with Barack Obama’s White House.
There are about 2,120 broker-dealers, plus 205,000 of their agents registered in the state.