Removing Barriers Blog

Nevada Credit Union League Comments State Fiduciary Rule
Posted October 12, 2017 by CUNA Advocacy

Last week, the Nevada Credit Union League (NCUL) submitted a comment letter to the Nevada Secretary of State’s Securities Division public workshop on proposed regulations relating to the implementation of SB 383. SB 383, authored by Senator Aaron Ford, subjects broker-dealers, investment advisers and sales representatives to the fiduciary standard previously applied to financial planners. SB 383 became effective on July 1 and directed the Securities Division to develop regulations defining practices that would fall under and be exempt from the broadened fiduciary standard. Although the intent of SB 383 is a good one, to protect investors and encourage all advisers to act in the investor’s best interest, NCUL submitted a comment letter expressing worries about regulations harming credit union’s ability to offer financial planning services and in turn harm Nevadans. The letter shared that credit unions offering investment services to their members aim to help Nevadan families of all means receive information about saving for retirement and planning for their future. A second workshop is expected to be scheduled soon and NCUL will continue working to make sure the proposed regulations are not overly burdensome.

On the federal level, the Department of Labor’s (DOL) Fiduciary rule will be likely delayed until July 2019. CUNA has sent several comment letters urging the DOL to delay the applicability of the Fiduciary rule to give credit unions time to resolve any additional compliance ambiguities. CUNA has also supported additional research efforts to ensure that credit union members are not harmed by unintended consequences of overly broad rules, and additional analysis about whether choices may be limited for moderate or low-income consumers.