|Assembly Actions - Lowercase
Senate Actions - UPPERCASE
|Jan 30, 2019||referred to judiciary|
senate Bill S2872
Current Bill Status - In Senate Committee Judiciary Committee
- In Committee
- On Floor Calendar
- Passed Senate
- Passed Assembly
- Delivered to Governor
- Signed/Vetoed by Governor
S2872 - Details
S2872 - Sponsor Memo
BILL NUMBER: S2872 SPONSOR: HOYLMAN TITLE OF BILL: An act to amend the general obligations law, in relation to mandating greater levels of disclosure by non-fiduciaries that provide investment advice PURPOSE: The Investment Transparency Act (ITA) mandates new disclosures by insti- tutions and individuals that provide investment advice, but who are not required by law, professional standards, or their own policy to follow a fiduciary standard of acting in their clients' best interests ("non-fi- duciary investment advisors"). SUMMARY OF PROVISIONS: Section 1 amends the general obligations law by adding a new article 6.
S2872 - Bill Text download pdf
S T A T E O F N E W Y O R K ________________________________________________________________________ 2872 2019-2020 Regular Sessions I N S E N A T E January 30, 2019 ___________ Introduced by Sen. HOYLMAN -- read twice and ordered printed, and when printed to be committed 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 REQUIRED TO ACT IN YOUR BEST INTERESTS, AND AM ALLOWED TO RECOMMEND INVESTMENTS THAT MAY EARN HIGHER FEES FOR ME OR MY FIRM, EVEN IF THOSE EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets [ ] is old law to be omitted.
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