assembly Bill A2476A

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

Your Voice

do you support this bill?

Please enter your contact information

Home address is used to determine the senate district in which you reside. Your support or opposition to this bill is then shared immediately with the senator who represents you.

Optional services from the NY State Senate:

Create an account. An account allows you to officially support or oppose key legislation, sign petitions with a single click, and follow issues, committees, and bills that matter to you. When you create an account, you agree to this platform's terms of participation.

Include a custom message for your Senator? (Optional)

Enter a message to your senator. Many New Yorkers use this to share the reasoning behind their support or opposition to the bill. Others might share a personal anecdote about how the bill would affect them or people they care about.

Actions

view actions (4)
Assembly Actions - Lowercase
Senate Actions - UPPERCASE
May 23, 2019 print number 2476a
May 23, 2019 amend and recommit to codes
Jan 28, 2019 reported referred to codes
Jan 22, 2019 referred to judiciary

Co-Sponsors

view additional co-sponsors

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.

Co-Sponsors

view additional co-sponsors

Multi-Sponsors

A2476A (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

A2476A (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.

A2476A (ACTIVE) - Bill Text download pdf


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

                                 2476--A

                       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 -- reported and referred to the
  Committee on Codes --  committee  discharged,  bill  amended,  ordered
  reprinted as amended and recommitted to said committee

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
NON-FIDUCIARY  INVESTMENT  ADVISORS.   NON-FIDUCIARY INVESTMENT ADVISORS
ARE INVESTMENT ADVISORS NOT SUBJECT TO A FIDUCIARY STANDARD UNDER  STATE
OR FEDERAL LAWS OR REGULATIONS OR BY ANY APPLICABLE STANDARDS OF PROFES-
SIONAL  CONDUCT,  AND MAY INCLUDE, BUT NOT BE LIMITED TO INDIVIDUALS AND
INSTITUTIONS THAT IDENTIFY THEMSELVES TO CONSUMERS AS "BROKERS,"  "DEAL-
ERS," "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 POTENTIAL CLIENTS ORALLY AND

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

Comments

Open Legislation comments facilitate discussion of New York State legislation. All comments are subject to moderation. Comments deemed off-topic, commercial, campaign-related, self-promotional; or that contain profanity or hate speech; or that link to sites outside of the nysenate.gov domain are not permitted, and will not be published. Comment moderation is generally performed Monday through Friday.

By contributing or voting you agree to the Terms of Participation and verify you are over 13.