Assembly Bill A675

2023-2024 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 Assembly
    • In Committee Senate
    • On Floor Calendar Assembly
    • On Floor Calendar Senate
    • Passed Assembly
    • Passed Senate
  • Delivered to Governor
  • Signed By Governor

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2023-A675 (ACTIVE) - Details

Current Committee:
Assembly 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
2019-2020: A2476
2021-2022: A1026

2023-A675 (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.

2023-A675 (ACTIVE) - Bill Text download pdf

                             
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                    675
 
                        2023-2024 Regular Sessions
 
                           I N  A S S E M B L Y
 
                             January 11, 2023
                                ___________
 
 Introduced  by  M.  of A. DINOWITZ, STECK, SEAWRIGHT, BICHOTTE HERMELYN,
   COOK, COLTON, THIELE -- 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
 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
 IN WRITING PRIOR TO ENTERING  INTO  ANY  CONTRACT  WITH  SUCH  POTENTIAL
 CLIENT  THAT  ENSURES  THE  POTENTIAL CLIENT IS AWARE THAT THE FIDUCIARY
 STANDARD DOES NOT APPLY TO THE NON-FIDUCIARY  INVESTMENT  ADVISOR.  SUCH
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
                                                            LBD00582-01-3
              

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