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Nevada Securities Administrator to Issue Rules on Breaches, Protect Small Biz

By Ray Harmon, John Iekel • July 27, 2017 • 0 Comments
Nevada’s new law that imposes a fiduciary duty on broker-dealers, sales representatives and investment advisers is now in effect; it also authorizes rules on fiduciary duty.

SB 383, which Gov. Brian Sandoval (R) signed into law June 2, went into effect on July 1. The measure not only concerns duties service providers must fulfill; it also spells out duties that the Nevada Securities Administrator must perform.

Nevada Securities Administrator Diana Foley is to adopt regulations concerning these fiduciary duties, including penalties. While she is directed by the new law to promulgate rules clarifying what acts, practices and courses of business are and are not breaches of that new duty, she also is directed to first ensure whatever rules she issues are not overly burdensome to Nevada small businesses with 150 or fewer part- and full-time employees.

Accordingly, Foley is collecting feedback from those businesses through Aug. 15. Here is the passage directly relating to that comment solicitation:

Impact on Small Business

The Division will determine if proposed regulations adopted pursuant to SB 383 are likely to impose a direct and significant economic burden upon small business or directly restrict the formation, operation or expansion of a small business. This determination is focused on the impact of the regulations as opposed to the statutory language and duty originally imposed by SB 383. A small business is defined as a business conducted for profit that employs fewer than 150 full-time or part-time employees. If you believe your small business may be so affected by the Division’s adoption of regulations as generally described above, the Division invites written comments to be sent to the attention of the Administrator at fiduciaryduty@sos.nv.gov no later than August 15, 2017. Please explain in your comment how you qualify as a small business by identifying the number of your employees.


The Nevada Secretary of State’s webpage provides a link through which one can obtain information concerning the new fiduciary duty the law imposes. It is available here.

Ray Harmon is Government Affairs Counsel for the American Retirement Association. John Iekel is Senior Writer for ASPPA and Editor of ASPPA Net and ASPPA Connect.

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