SIFMA provides comments to the Connecticut State Capitol on SB 265. This bill would require a “financial advisor” to provide potential investors – prior to entering into any agreement – with a signed written statement detailing, among other things: (1) the advisor’s duty of care to the investor; (2) any compensation the financial advisor expects to receive, including up-front charges, commissions, and incentives; (3) any fees related to investment products; and (4) any actual or potential conflicts of interest. This signed statement would then be updated at least annually. We appreciate the Committee’s interest in protecting consumers. We, however, respectfully suggest that the legislation does not serve that purpose while raising additional issues and concerns.
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