Fiduciary laws are also likely to accelerate if more Democrats are elected to state houses in November. Nevada lawmakers approved a law last July that extends an existing fiduciary law to include financial planners, stockbrokers and other commission-based investment representatives. Advisors in the state also must disclose profits or commissions they earn on client investments.
Legislation also has been adopted in Connecticut as New York and New Jersey consider fiduciary laws. Courts in four states—California, Missouri, South Carolina and South Dakota—have imposed fiduciary standards on broker-dealers.