ASA Urges Massachusetts to Adopt SEC’s National Reg BI Standard
The Division should be fair to Massachusetts residents and its economy and refrain from imposing a standard that is unworkable and inconsistent with the national standard.
WASHINGTON – Today the American Securities Association (ASA) sent a letter to the Massachusetts Securities Division urging the state to refrain from moving forward with its unworkable proposal that harms Massachusetts’ retail investors and will contribute to widening economic inequality, and instead adopt the U.S. Securities and Exchange Commission’s (SEC) national Regulation Best Interest Standard.
“The SEC’s national best interest standard greatly strengthens consumer protections without disenfranchising Massachusetts consumers, and it maintains access to the affordable services and products residents use to save and invest for a better future,” ASA CEO Chris Iacovella wrote in the letter. “The Division should be fair to Massachusetts residents and its economy and refrain from imposing a standard that is unworkable and inconsistent with the national standard.”
In the letter, ASA warned the Proposal will apply a standard that: (1) has been proven to harm consumers, (2) exacerbates income and wealth inequalities, (3) ignores over a decade of work by independent experts at the SEC, and (4) threatens Massachusetts economic competitiveness relative to other states.
To read the full letter, click here.
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