assembly Bill A2476

2019-2020 Legislative Session

Relates to mandating greater levels of disclosure by non-fiduciaries that provide investment advice

download bill text pdf

Sponsored By

Current Bill Status - In Assembly Committee


  • Introduced
  • In Committee
  • On Floor Calendar
    • Passed Senate
    • Passed Assembly
  • Delivered to Governor
  • Signed/Vetoed by Governor

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Actions

view actions (2)
Assembly Actions - Lowercase
Senate Actions - UPPERCASE
Jan 28, 2019 reported referred to codes
Jan 22, 2019 referred to judiciary

Co-Sponsors

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Multi-Sponsors

A2476 (ACTIVE) - Details

See Senate Version of this Bill:
S2872
Current Committee:
Assembly Codes
Law Section:
General Obligations Law
Laws Affected:
Add Art 6 §§6-101 - 6-103, Gen Ob L
Versions Introduced in Other Legislative Sessions:
2015-2016: A6933
2017-2018: A2464

A2476 (ACTIVE) - Summary

Relates to mandating greater levels of disclosure by non-fiduciaries that provide investment advice; requires signed acknowledgement of disclosure informing clients that the advisor owes no fiduciary duty.

A2476 (ACTIVE) - Bill Text download pdf


                    S T A T E   O F   N E W   Y O R K
________________________________________________________________________

                                  2476

                       2019-2020 Regular Sessions

                          I N  A S S E M B L Y

                            January 22, 2019
                               ___________

Introduced  by  M.  of  A.  DINOWITZ, GOTTFRIED, ORTIZ, STECK, PICHARDO,
  MOSLEY, BLAKE, SEAWRIGHT, BICHOTTE, COOK, COLTON, GALEF,  BUCHWALD  --
  Multi-Sponsored  by  -- M. of A. DAVILA, GLICK, SIMON -- read once and
  referred to the Committee on Judiciary

AN ACT to amend the general obligations law, in  relation  to  mandating
  greater  levels  of disclosure by non-fiduciaries that provide invest-
  ment advice

  THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND  ASSEM-
BLY, DO ENACT AS FOLLOWS:

  Section  1.  The  general  obligations  law is amended by adding a new
article 6 to read as follows:
                                ARTICLE 6
                       INVESTMENT TRANSPARENCY ACT
SECTION 6-101. APPLICATION.
        6-102. REQUIRED DISCLOSURE.
        6-103. ENFORCEMENT.
  § 6-101. APPLICATION. THE PROVISIONS OF THIS ARTICLE ARE APPLICABLE TO
INVESTMENT ADVISORS CURRENTLY NOT SUBJECT TO A FIDUCIARY STANDARD  UNDER
EXISTING  STATE  AND  FEDERAL  LAWS  OR REGULATIONS OR BY ANY APPLICABLE
STANDARDS OF PROFESSIONAL CONDUCT. "NON-FIDUCIARY  INVESTMENT  ADVISORS"
SHALL  INCLUDE,  BUT NOT BE LIMITED TO INDIVIDUALS AND INSTITUTIONS THAT
IDENTIFY THEMSELVES TO CONSUMERS AS  "BROKERS,"  "DEALERS,"  "INVESTMENT
ADVISORS,"   "FINANCIAL   ADVISORS,"  "FINANCIAL  PLANNERS,"  "FINANCIAL
CONSULTANTS," "RETIREMENT PLANNERS," "RETIREMENT  BROKERS,"  "RETIREMENT
CONSULTANTS,"  OR  BY  ANY  OTHER TERM THAT IS SUGGESTIVE OF INVESTMENT,
FINANCIAL PLANNING, OR RETIREMENT PLANNING KNOWLEDGE OR EXPERTISE.
  § 6-102. REQUIRED DISCLOSURE.  1.  NON-FIDUCIARY  INVESTMENT  ADVISORS
SHALL  MAKE A PLAIN LANGUAGE DISCLOSURE TO CLIENTS ORALLY AND IN WRITING
AT THE OUTSET OF THE RELATIONSHIP THAT ENSURES THAT INDIVIDUAL INVESTORS
ARE AWARE OF POTENTIAL CONFLICTS OF INTEREST. SUCH  REQUIRED  DISCLOSURE
SHALL  STATE  THE  FOLLOWING: "I AM NOT A FIDUCIARY. THEREFORE, I AM NOT

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.

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