In a March 25, 2015 press release, Mr. Scott M. Stringer laid bare the details of his plan to "enact a state law requiring that financial advisors disclose whether they put their own financial interests above those of their clients." In support of his desire for an expanded fiduciary standard to be implemented across the United States, he released a study that (a) chronicles the history of fiduciary responsibilities (b) discusses the downside of relying on the suitability standard and (c) summarizes how reform should occur.

According to "Safeguarding Our Savings: Protecting New Yorkers Through the Fiduciary Standard" (March 2015), fine print communications are insufficient and must be replaced with understandable disclosure language "so that prospective clients know of potential conflicts of interest and to what party the advisers hold their ultimate allegiance." The concept of suitability is debunked. Authors of the study add that the status quo could result in a bigger price tag for investors. Advisors may direct clients to funds that have higher fees than comparable offerings or encourage rollovers that entail transaction costs. Even when a more costly choice makes sense, the return to an investor will be impacted accordingly.

Time will tell if New York City and other states succeed in implementing an expanded fiduciary standard, ahead of federal regulators. Certainly this announcement gives financial advisory firms further fodder for expanding compliance teams.