Recently, Nevada Governor Brian Sandoval signed into law Senate Bill 383 that revised current regulations for financial planners. The changes expand the definition of a financial planner in NRS 628A.010 to now include broker-dealers and investment advisers in Nevada, which in turn requires such firms to adhere to fiduciary duty requirements imposed on financial planners under NRS 628A.020.
Senate Bill 383 also gives the Nevada Securities Division the authority to adopt additional regulations pertaining to the fiduciary duty applicable to financial planners. To that end, the Division has stated the following on its website:
“At this time, the Division intends to include regulations that will further define acts, practices, or a course of business that are a violation of the fiduciary duty imposed by NRS 628A.020. The Division is also in the process of drafting regulations that will identify acts, practices, or a course of business that may be excluded as a violation of the fiduciary duty. “
Similar to the Department of Labor’s recently adopted Fiduciary Rule, Nevada’s law is intended to help protect retirees and other investors. Considering the uncertainty that continues to surround the DOL’s Rule, it is being speculated that other states may follow Nevada’s suit and implement their own fiduciary standard.
Firms should analyze the impact of the revised rule on their firm and then implement appropriate policies, procedures, and internal controls to help ensure compliance.
The Core Compliance team can assist firms with creating and implementing appropriate policies, procedures, and controls pertaining to this and other regulations.
For more information, please contact us at (619) 278-0020 to schedule a consultation call.