Nevada is set to become the first U.S. state to impose a statutory fiduciary duty on broker-dealers and their reps.

Earlier this month, Nevada Governor Brian Sandoval, signed a bill that will introduce a fiduciary duty on broker-dealers, sales reps and advisors, who provide investment advice, among other things.

Currently, Nevada imposes a fiduciary duty on “financial planners,” but it will now expand that definition to eliminate exclusions for brokers and sales reps; it will give state regulators the authority to punish violations. The new requirements will kick in on July 1.

Earlier this month, the U.S. Department of Labor’s new fiduciary rule, which only applies to retirement advice, also took effect after a delay — although enforcement of that rule has been put off until 2018. Furthermore, the U.S. Securities and Exchange Commission (SEC) is also supposed to be working on its own federal rule.

In the meantime, U.S. industry trade associations are lobbying against the new requirements in Nevada. In a letter to state securities officials, a handful of trade groups, including the Securities and Financial Markets Association (SIFMA), calls on the state to either delay the implementation of the rule; or establish that it’s sufficient for firms to comply with existing securities regulations in areas such as disclosure, until regulations to implement the new state law are finalized.

The trade associations also argue that state regulations should “acknowledge the possibility of a future SEC and/or [Financial Industry Regulatory Authority (FINRA)] fiduciary/best interest standard.”

Furthermore, the groups suggest that the new law may be inconsistent with FINRA rules because it allows clients to pursue civil actions against broker-dealers and reps that violate the new fiduciary requirements, whereas FINRA’s rules require that clients resolve disputes through its arbitration process.

In Canada, individual provinces are also taking divergent approaches to best interest requirements as Ontario and New Brunswick going it alone to develop new investor protection standards.