senate Bill S2872

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 Senate Committee Judiciary 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 (1)
Assembly Actions - Lowercase
Senate Actions - UPPERCASE
Jan 30, 2019 referred to judiciary

S2872 (ACTIVE) - Details

See Assembly Version of this Bill:
A2476
Current Committee:
Senate Judiciary
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

S2872 (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.

S2872 (ACTIVE) - Sponsor Memo

S2872 (ACTIVE) - 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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