Solicitation of Comments on Proposed Fiduciary Conduct Standard for Broker-Dealers, Agents, Investment Advisers, and Investment Adviser Representatives

The Massachusetts Securities Division (the "Division") of the Office of the Secretary of the Commonwealth is soliciting comments on its proposed regulations that would:

  • Deem it an unethical or dishonest conduct or practice for a broker-dealer, agent, investment adviser, or investment adviser representative registered or required to be registered in Massachusetts to fail to act in accordance with a fiduciary duty to any customer or client, at 950 CMR 12.207; and
  • Revise certain paragraphs in 950 CMR 12.204 and 950 CMR 12.205 to make clear that the existing suitability standard still applies to any relationships or transactions expressly excluded from the fiduciary standard.

The proposed regulations are available below.

Regulation, as amended (clean) (PDF)

Regulation, as amended (redline) (PDF)

Notice of Comment Period and Public Hearing (PDF)

Initial Small Business Impact Statement (PDF)

Request for Public Comment (PDF)

Comment Submission Process

The Division should receive written comments on the proposed amended regulations no later than Tuesday, January 7, 2020 at 5:00 p.m.

We will post comments on the Massachusetts Securities Division website and comments are subject to public records laws. We do not edit personal identifying information from submissions; submit only information that you wish to make available publicly.

Submission via Mail

Please mail any comments on the proposed amendments to:

Office of the Secretary of the Commonwealth
Attn: Proposed Regulations – Fiduciary Conduct Standard
Massachusetts Securities Division
One Ashburton Place, Room 1701
Boston, MA 02108

Submission via Facsimile

Faxed comments may be sent to (617) 248-0177. Comments sent via facsimile should include a cover sheet to the attention of "Proposed Regulations."

Submission via Email

Email comments or submissions of scanned comment letters attached to an email may be submitted to securitiesregs-comments@sec.state.ma.us.

If you have questions about the proposed amendments, you may contact the Division at (617) 727-3548.

Public Hearing

A public hearing on the proposed amendments will be held at 9:30 a.m. on Tuesday, January 7, 2020 at the Massachusetts State House, Room 222, 24 Beacon Street, Boston, MA 02133.

Interested parties will be afforded a brief, allocated period in which to orally present data, views, and arguments relative to the proposed action. Priority will be given to those who register with the Division in advance. Interested parties can register by emailing securitiesregs-comments@sec.state.ma.us

Written presentations may be made at the hearing or submitted at any time prior to the close of business on Tuesday, January 7, 2020 to the Massachusetts Securities Division via mail, facsimile, or email, as provided above. Copies of the proposed amendments are available on the Division's website, or by calling (617) 727-3548 or emailing MSD@sec.state.ma.us.

Public Comments

December 20, 2019

December 20, 2019 – Matthew Berard

December 20, 2019 – Martin Connolly

December 20, 2019 – Martin Lowenthal

December 20, 2019 – Brian McGrath

December 20, 2019 – Peter Klay

December 20, 2019 – Ari Stonehill

December 21, 2019

December 21, 2019 – Boris Lokshin

December 29, 2019

December 29, 2019 – Adam Sachs

December 30, 2019

December 30, 2019 – Michael Elcock

December 30, 2019 – Timothy Leveroni

December 30, 2019 – Sandra Gilpatrick

December 30, 2019 – Chris Sheehan

December 30, 2019 – Kathryn Dunlop

December 30, 2019 – Dallas Coffman

December 30, 2019 – Marioleni Mandelis

December 30, 2019 – Matthew Schwartz

December 30, 2019 – Cheryl Fonseca

December 30, 2019 – Robert Matson

December 30, 2019 – John Frongillo

December 30, 2019 – Mark Linnane

December 30, 2019 – Robert Shepherd

December 30, 2019 – Samir Shah

December 30, 2019 – Alan Ioffredo

December 30, 2019 – Edward Quirk

December 30, 2019 – Lee Generous

December 30, 2019 – Mark Bilodeau

December 30, 2019 – Philip Mathey

December 30, 2019 – Michelle Griffin

December 30, 2019 – Angelo Anello

December 30, 2019 – Deborah Goodman

December 30, 2019 – Erick DeCastro

December 30, 2019 – Catherine Valega

December 30, 2019 – John Sawyer

December 30, 2019 – Daniel Leveroni

December 30, 2019 – Steven Nowicki

December 30, 2019 – Julian Morris

December 30, 2019 – Michael Poggi

December 31, 2019

December 31, 2019 – Alternative & Direct Investment Securities Association

December 31, 2019 – Joseph Ferreira

December 31, 2019 – Brian Ruttle

December 31, 2019 – Rachael Linnehan

December 31, 2019 – Paul LaGreca Jr

December 31, 2019 – Will Hackler

December 31, 2019 – Jonathan Sudkin

December 31, 2019 – Robert Spadano

December 31, 2019 – John Florence

January 1, 2020

January 1, 2020 – Francis Saba

January 2, 2020

January 2, 2020 – Fred Saltzberg

January 2, 2020 – Gary Pence

January 2, 2020 – Peter Magni

January 2, 2020 – Doug DiCerbo

January 2, 2020 – Robert Basiri

January 2, 2020 – Adam Marino

January 2, 2020 – Renee West

January 2, 2020 – John Kerr

January 2, 2020 – Pete Lounsbury

January 2, 2020 – Sarin Barsoumian

January 2, 2020 – Stephen Guy

January 2, 2020 – Andrew Brzozowski

January 2, 2020 – Kenneth Lefebvre

January 2, 2020 – Timothy Demeritt

January 2, 2020 – Dan Muscatello

January 2, 2020 – Sean Mackey

January 2, 2020 – Joseph Deluca

January 2, 2020 – Joseph Peppe

January 2, 2020 – Matthew Delaney

January 2, 2020 – James Bianchi

January 2, 2020 – Michael Kelley

January 2, 2020 – Kristine Koczajowski

January 2, 2020 – Joanne Leveroni

January 2, 2020 – Thomas Hitchcock

January 2, 2020 – Craig Christo

January 2, 2020 – Michael Dalton

January 2, 2020 – Penelope Tzougros

January 2, 2020 – David Gillespie

January 2, 2020 – Gary Hultgren

January 2, 2020 – Kelly Thomas

January 2, 2020 – Joseph Donovan

January 2, 2020 – James T. Wilcox Jr.

January 2, 2020 – Manish Nigam

January 3, 2020

January 3, 2020 – Brian O'Sullivan

January 3, 2020 – Gregg Libutti

January 3, 2020 – Patrick Kane

January 3, 2020 – Mark Kinback

January 3, 2020 – Noel Anderson

January 3, 2020 – John Krom

January 3, 2020 – Dan Babine

January 3, 2020 – Karen Mazukina

January 3, 2020 – Timothy Tracy

January 3, 2020 – Bogdan Siekirka

January 3, 2020 – Pete Walsh

January 3, 2020 – Jackson Leung

January 3, 2020 – Lauren Oliveira

January 3, 2020 – Sam Dowd

January 3, 2020 – Andrew Rudman

January 3, 2020 – Jared Barilaro

January 3, 2020 – Kim Daley Lamirande

January 3, 2020 – Robyn Sartell

January 3, 2020 – Carroll Crispo

January 3, 2020 – John Kuhn

January 3, 2020 – Gabe Anthony

January 3, 2020 – Patrick Clunan

January 3, 2020 – Steven Swinhart

January 3, 2020 – Karen Bamber

January 3, 2020 – David Shapiro

January 3, 2020 – Angela Whitcher

January 3, 2020 – Miguel Ribeiro

January 3, 2020 – Davis & Harman LLP

January 3, 2020 – Stephen Harmon

January 3, 2020 – Joseph Buonadonna

January 3, 2020 – Alicia Distler

January 3, 2020 – Michael Dimare

January 3, 2020 – Steven Healey

January 3, 2020 – Erik Butler

January 3, 2020 – Marc Albano

January 3, 2020 – Laurence Tuot

January 3, 2020 – Matthew Sullivan

January 3, 2020 – Jaime Barnes

January 3, 2020 – Paul D'Ambrosio

January 3, 2020 – Lisa Feuerbach

January 3, 2020 – Teresa Lirio

January 3, 2020 – Daniel Boncarosky

January 3, 2020 – David Spitz

January 3, 2020 – Michelle Spaziani

January 3, 2020 – Stephen Hollingsworth

January 3, 2020 – Rovena Ashiku

January 3, 2020 – Beth Sweeney

January 3, 2020 – Daniel Milligan

January 3, 2020 – Chris Stafford

January 3, 2020 – Jay Jackson

January 3, 2020 – Christian Clifford

January 3, 2020 – Daniel Wagner

January 3, 2020 – Jason Mullane

January 3, 2020 – Sebastian Gonzalez

January 3, 2020 – Thomas Curran

January 3, 2020 – John Rhoades

January 3, 2020 – Jonathan Jackson

January 3, 2020 – Jonathan Farnham

January 3, 2020 – Susan Karsch

January 3, 2020 – Bill Cratty

January 3, 2020 – Sean Todd

January 3, 2020 – Edward Marshall

January 3, 2020 – Graham Tower

January 3, 2020 – Garth Fondo

January 3, 2020 – David Nicholson

January 3, 2020 – Ian O'Neal

January 3, 2020 – Stephen Coffey

January 3, 2020 – David Lessner

January 3, 2020 – Sean Flynn

January 3, 2020 – Kristin Weisser

January 3, 2020 – Tim Reitzenstein

January 3, 2020 – Jeanelle Plouffe

January 3, 2020 – Kevin Connors

January 3, 2020 – Samuel Lookner

January 3, 2020 – Anne-Marie McCormick

January 3, 2020 – Timothy Corkum

January 3, 2020 – Roger Cummings

January 3, 2020 – Lisa Mobilia

January 3, 2020 – Matthew Ferrelli

January 3, 2020 – William Callagy

January 3, 2020 – Frank Addonizio

January 3, 2020 – Julie Nickerson

January 3, 2020 – Tchintcia Barros

January 3, 2020 – Gregg Smalley

January 3, 2020 – Lindsay Willard

January 3, 2020 – Josh Kapp

January 3, 2020 – Amanda Beddia

January 3, 2020 – Richard Manuel

January 3, 2020 – Tiffany Gauvin

January 3, 2020 – Hugh Mullin

January 3, 2020 – Dan Steele

January 3, 2020 – Michael Farley

January 3, 2020 – Suzanne King

January 3, 2020 – Lisa Whitman

January 3, 2020 – Surabhi Ahmad

January 3, 2020 – Jennifer Hamilton

January 3, 2020 – George Norcross

January 3, 2020 – William Truscott

January 3, 2020 – Anthony Salerno

January 3, 2020 – Kelly Collins

January 3, 2020 – Jay Gordon

January 3, 2020 – Matthew Rich

January 3, 2020 – Ryan McCabe

January 3, 2020 – Keith Weinstein

January 3, 2020 – Robert Cotter

January 3, 2020 – Scott Illingsworth

January 3, 2020 – Ryan Hazel

January 3, 2020 – Jay Woerdeman

January 3, 2020 – Stephanie Lynne

January 3, 2020 – Christine DelBrocco

January 3, 2020 – Stephen Craig

January 3, 2020 – Jessica Crooker

January 3, 2020 – Mark Braley

January 3, 2020 – Kevin Howley

January 3, 2020 – Kimberly Campbell

January 3, 2020 – Irene Garand

January 3, 2020 – Michael Carnevale

January 3, 2020 – Michael Hulett

January 3, 2020 – Gary McGovern

January 3, 2020 – Reed Spencer

January 3, 2020 – Matthew Sachar

January 3, 2020 – Lisa Wolf

January 3, 2020 – Barry Forman

January 3, 2020 – Aaron Gerstel

January 3, 2020 – Christine Douglass

January 3, 2020 – Todd Darling

January 3, 2020 – Christopher Civale

January 3, 2020 – Michael Welch

January 3, 2020 – Matt Neely

January 3, 2020 – Rohan Mehta

January 3, 2020 – Jennifer Gray

January 3, 2020 – Stephen Gesualdi

January 3, 2020 – James Carey

January 3, 2020 – Paul Guinee

January 3, 2020 – Edward Karsch

January 3, 2020 – Jeffrey Wakefield

January 3, 2020 – Robert Neilson

January 3, 2020 – Jody Conroy

January 3, 2020 – Peter Alberding

January 3, 2020 – John Donaruma

January 3, 2020 – Zack Thebeau

January 3, 2020 – Katherine Balnis

January 3, 2020 – Madeline McCubbin

January 3, 2020 – Steven O'Reilly

January 3, 2020 – Jefferson Correia

January 3, 2020 – Sharon Hughes

January 3, 2020 – Charles Chiesa

January 3, 2020 – Fania Naccour

January 3, 2020 – Catherine Johnson

January 3, 2020 – Baxter Smith

January 3, 2020 – Matthew Stephan

January 3, 2020 – Laura Ego

January 3, 2020 – Robert Perkoski

January 3, 2020 – Patrick Mullins

January 3, 2020 – Jeremy Javidi

January 4, 2020

January 4, 2020 – Robert McGinness

January 4, 2020 – Cetera Financial Group, Inc.

January 4, 2020 – Frederick Lane

January 4, 2020 – Edward Lizotte

January 4, 2020 – Lars Lambrecht

January 5, 2020

January 5, 2020 – Jaimie Blackman

January 5, 2020 – John Morin

January 5, 2020 – Gregg Forger

January 5, 2020 – Patricia Santin 

January 5, 2020 – William H. Altman

January 5, 2020 – Stephen Dembowski

January 5, 2020 – Verner Khederian

January 5, 2020 – James Fuerstnau

January 5, 2020 – Bridget Grella

January 6, 2020

January 6, 2020 – Theresa Yong

January 6, 2020 – Mary Clausen

January 6, 2020 – Joshua O'Gara

January 6, 2020 – Tracy Hendrickson

January 6, 2020 – Kerine Gordon

January 6, 2020 – Dona Sorrenti

January 6, 2020 – John Borders

January 6, 2020 – Andrew DeSimone

January 6, 2020 – Kendrick Kester

January 6, 2020 – Vanessa Fuccione

January 6, 2020 – Steve Schoonveld

January 6, 2020 – Andres Vilms

January 6, 2020 – Adam Graham

January 6, 2020 – Laurel Soltys

January 6, 2020 – Jeffrey Giovannelli

January 6, 2020 – Primerica, Inc.

January 6, 2020 – National Association of Insurance & Financial Advisors – Massachusetts (NAIFA – MA) & National Association of Insurance & Financial Advisors (NAIFA)

January 6, 2020 – Kelly Conroy

January 6, 2020 – Charlene Albanese

January 6, 2020 – Alison Stewart

January 6, 2020 – American Council of Life Insurers (ACLI) & Life Insurance Association of Massachusetts (LIAM)

January 6, 2020 – Carol B. Seitz

January 6, 2020 – American Benefits Council

January 6, 2020 – Institute for Portfolio Alternatives (IPA)

January 6, 2020 – Kevin Cicci

January 6, 2020 – Paul O'Glishen

January 6, 2020 – Matt Smith

January 6, 2020 – Securities Industry and Financial Markets Association (SIFMA)

January 6, 2020 – Securities Industry and Financial Markets Association (SIFMA); American Council of Life Insurers (ACLI); American Securities Association (ASA); Association of Advanced Life Underwriting (AALU); Center for Capital Markets Competitiveness, U.S. Chamber of Commerce; Financial Services Institute (FSI); Institute for Portfolio Alternatives (IPA); Insured Retirement Institute (IRI); Life Insurance Association of Massachusetts (LIAM); National Association for Fixed Annuities (NAFA); National Association of Insurance & Financial Advisors (NAIFA); National Association of Insurance & Financial Advisors – Massachusetts (NAIFA – MA); & Small Business Investor Alliance (SBIA)

January 6, 2020 – Consumer Federation of America (CFA)

January 6, 2020 – Investment Adviser Association (IAA)

January 6, 2020 – South Shore Chamber of Commerce

January 6, 2020 – Investment Company Institute (ICI)

January 6, 2020 – UBS Financial Services, Inc.

January 6, 2020 – Mark Teed

January 6, 2020 – Julie Frisoli

January 6, 2020 – Michael Murray

January 6, 2020 – Rose Labaky

January 6, 2020 – Michael Serafino

January 6, 2020 – Thomas McGuire

January 6, 2020 – Greg Pennini

January 6, 2020 – Brian Wyman

January 6, 2020 – Suzanne Levin

January 6, 2020 – Marc Garand

January 6, 2020 – Richard Turner

January 6, 2020 – Tara Gately

January 6, 2020 – Patrick Devery

January 6, 2020 – Joseph Reidy

January 6, 2020 – Vincent Petrangelo

January 6, 2020 – Lawrence Eppolito

January 6, 2020 – Brian O'Donnell

January 6, 2020 – Annina Smith

January 6, 2020 – Karen Busanovich

January 6, 2020 – Wendy Karkoska

January 6, 2020 – Jay Murphy

January 6, 2020 – Roberto Solano

January 6, 2020 – John Postizzi

January 6, 2020 – Ryan Hendrickson

January 6, 2020 – Jason Tholander

January 6, 2020 – Eric Bergstrom

January 6, 2020 – Phillip Closuit

January 6, 2020 – Daniel Rabatsky

January 6, 2020 – Paul Schofield

January 6, 2020 – John Mcdonough

January 6, 2020 – Alexander Kezer

January 6, 2020 – Christopher Moschella

January 6, 2020 – David Clark

January 6, 2020 – Stephen Buff

January 6, 2020 – Matthew Davis

January 6, 2020 – Vincent Panzini

January 6, 2020 – Peter Frisch

January 6, 2020 – Samuel Chamberlain

January 6, 2020 – Carolyn Nolan

January 6, 2020 – Thomas Pedersen

January 6, 2020 – Richard Byrd

January 6, 2020 – Kevin Sullivan

January 6, 2020 – Christopher Ronkese

January 6, 2020 – Harold Wiksten

January 6, 2020 – Gary Oman

January 6, 2020 – John McCarthy

January 6, 2020 – Bharathan Ilangovan

January 6, 2020 – Neal Borges

January 6, 2020 – Corey Scrupps

January 6, 2020 – Eileen Simons

January 6, 2020 – Nicholas Cantone

January 6, 2020 – James Hoogasian

January 6, 2020 – Greig Rance

January 6, 2020 – Paul Lisanke

January 6, 2020 – Daniel Ryan

January 6, 2020 – Janet Frye

January 6, 2020 – Stephen Kelleher

January 6, 2020 – Michael Garrison

January 6, 2020 – Henry Shaughnessy

January 6, 2020 – Patricia Beckwith

January 6, 2020 – Barry Kolano

January 6, 2020 – Melissa Indelicato

January 6, 2020 – Ellen Kenney

January 6, 2020 – Jacob Larson

January 6, 2020 – Leilani Germain

January 6, 2020 – Stephen Adams

January 6, 2020 – Rich Van Loan

January 6, 2020 – Catherine Fitzgerald

January 6, 2020 – Michael Alimi

January 7, 2020

January 7, 2020 – Michael Prestileo

January 7, 2020 – Insured Retirement Institute (IRI)

January 7, 2020 – US Chamber of Commerce, Center for Capital Markets Competitiveness (CCMC); South Shore Chamber of Commerce; Cape Cod Regional Chamber; Springfield Regional Chamber; & Worcester Regional Chamber of Commerce

January 7, 2020 – Lauren Gawlik

January 7, 2020 – Beth Griffith

January 7, 2020 – Kevin Flynn

January 7, 2020 – Erin Miner

January 7, 2020 – Massachusetts Taxpayers Foundation

January 7, 2020 – Financial Services Institute (FSI)

January 7, 2020 – Francis W. Farley

January 7, 2020 – American Securities Association (ASA)

January 7, 2020 – New York Life Insurance Company

January 7, 2020 – Pacific Life Insurance Company

January 7, 2020 – North American Securities Administrators Association (NASAA)

January 7, 2020 – Alison Jones

January 7, 2020 – Massachusetts Mutual Life Insurance Company & MML Investors Services, LLC

January 7, 2020 – Kurt Jamiel

January 7, 2020 – Morgan Stanley Smith Barney LLC

January 7, 2020 – American Retirement Association (ARA)

January 7, 2020 – CUNA Mutual Group

January 7, 2020 – Massachusetts Business Roundtable

January 7, 2020 – Public Investors Advocate Bar Association (PIABA)

January 7, 2020 – Fidelity Investments

January 7, 2020 – Primerica, Inc. & Various Agents of PFS Investments Inc.

January 7, 2020 – Associated Industries of Massachusetts (AIM)

January 7, 2020 – AARP Massachusetts

January 7, 2020 – Charles Schwab & Co., Inc.

January 7, 2020 – laucfp@comcast.net

January 7, 2020 – Greater Boston Chamber of Commerce

January 7, 2020 – XY Planning Network

January 7, 2020 – The Northwestern Mutual Life Insurance Company

January 7, 2020 – Chelsea Macfarlane

January 7, 2020 – Association for Advanced Life Underwriting (AALU)

January 7, 2020 – Governor Charles D. Baker

January 7, 2020 – LPL Financial LLC

January 7, 2020 – Raymond James Financial, Inc.

January 7, 2020 – Lincoln Financial Group

January 7, 2020 – State Street Global Advisors

January 7, 2020 – Dianne Eyssallenne

January 7, 2020 – Capital Group

January 7, 2020 – Cetera Financial Group, Inc.

January 7, 2020 – Financial Planning Association (FPA)

January 7, 2020 – Committee of Annuity Insurers (CAI)

January 7, 2020 – Massachusetts Bankers Association (MBA)

January 7, 2020 – RBC Capital Markets, LLC

January 7, 2020 – Institute for the Fiduciary Standard

January 7, 2020 – Massachusetts Competitive Partnership (MACP)

January 7, 2020 – Kris Cloyd

January 7, 2020 – Commonwealth Financial Network

January 7, 2020 – Marc Orloff

January 7, 2020 – Alexander DaCunha

January 7, 2020 – Charles Bonatakis

January 7, 2020 – Timothy Nolan

January 7, 2020 – Michael Berardi

January 7, 2020 – George Puliafico

January 7, 2020 – Timothy Davis

January 7, 2020 – Ryan McSheffrey

January 7, 2020 – Hiten Mehta

January 7, 2020 – John Rogers

January 7, 2020 – Michael Costa

January 7, 2020 – David Vancil

January 7, 2020 – Michael Tempesta

January 7, 2020 – John Castelot

January 7, 2020 – Wayne E. Cook

January 7, 2020 – DawnMarie Corneau

January 7, 2020 – Robert Danna

January 7, 2020 – Linda Gallant

January 7, 2020 – Suzanne Regan

January 7, 2020 – Lindsay Dyment

 


Public Comments Received After the Close of the Comment Period

January 8, 2020

January 8, 2020 – Karen Newman

January 8, 2020 – Louis Curto

January 8, 2020 – Stanley Fanfan

January 8, 2020 – Nancy Martin

January 9, 2020

January 9, 2020 – Salvatore Sigleski

January 9, 2020 – Paul DeSimone

January 9, 2020 – Cindy Sullivan

January 9, 2020 – Scott Davis

January 9, 2020 – John Worcester

January 13, 2020

January 13, 2020 – Matthew O'Connor

 

 


Preliminary Solicitation of Public Comments (June 14, 2019)
This proposal has been superseded by the December 2019 Fiduciary Conduct Standard Proposal.