A decision issued last week by the Massachusetts Supreme Judicial Court may have helped clear a path for other states to adopt a patchwork of regulation on broker-dealers that provide investment advice to retail customers, two Boston-based K&L Gates partners told Law.com.
On Aug. 25, the state high court unanimously held that Massachusetts Secretary of the Commonwealth William Galvin has the authority to implement a regulation known as the “fiduciary duty rule” under which a broker-dealer or its agent would assume certain fiduciary duties, including when providing recommendations and advice to retail investors. Robinhood Financial challenged this regulation.
