Christopher W. Gerold, Bureau Chief
New Jersey Bureau of Securities
153 Halsey Street, 6th Floor
Newark, New Jersey 07101
Re: Fiduciary Duty of Broker-Dealers and Investment Advisers (Proposal Number: PRN 2019-044); Proposed New Rule N.J.A.C. 13:47A-6.41
Dear Mr. Gerold:
The Securities Industry and Financial Markets Association (“SIFMA”)2 appreciates the opportunity to comment on the above-captioned proposed regulations (the “Proposal”). SIFMA represents the interests of more than 340 broker-dealers (“BDs”), investment advisers (“IAs”), and asset managers operating in the U.S. and global capital markets. Many of our members do business and serve retail investors in the state of New Jersey.3
The finance and insurance industry has roughly 200,000 employees in the state of New Jersey and accounts for almost 5% of all employment in the state. Every dollar spent in the securities industry in New Jersey generates an additional $1.22 for the state economy, and every job in the securities industry generates an additional 1.34 jobs statewide.4 The Proposal would represent a fundamental change in the way the securities sector operates in the state and would fundamentally alter its relationship with the millions of investors within the state.
SIFMA supports strong conduct standards for BDs and IAs that are designed to both enhance investor protection and preserve investor access to transaction-based advice and a variety of investment products. For that reason, we support the SEC’s recently promulgated, comprehensive, federal regulations that meaningfully raise conduct standards for BDs when providing personalized investment advice about securities to retail customers.