WASHINGTON, D.C. – The Financial Technology Association (FTA) submitted comments to the Ohio Division of Securities (ODS) this week, urging the agency to reconsider its May 6th proposed amendments to Rule 1301:6-3-44, which governs investment advice and account access.
FTA previously supported the Division’s March 20th proposal, which struck a thoughtful balance between consumer rights and regulatory workability. But the May 6th revision represents a significant step backward, introducing requirements that would burden fintech advisers, insulate incumbents from competition, and limit investors’ control over their own financial data.
FTA’s comments highlight two specific concerns. First, the proposal would require advisers to obtain plan sponsor authorization for employee benefit plan assets, an ambiguous and unworkable standard given that plan sponsors have already delegated investment decisions to participants in most defined contribution accounts. Second, the May proposal reintroduces a custodian notification requirement that the Division itself had previously struck after stakeholders warned it could be weaponized to lock consumers out of third-party advice.
FTA is calling on ODS to remove both provisions and restore the March 20th framework, an approach that reflects Ohio’s pro-innovation reputation and puts consumers first. Read the full comment letter here.
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The Financial Technology Association (FTA) is a network of fintech industry leaders shaping the future of finance. We champion financial innovation and advocate for policies that expand competition, access, and opportunity.