Source: https://www.nysenate.gov/legislation/bills/2019/A2476?fbclid=IwAR1mbDbB0KIAnc9-lTDsEwL3xmfJ1acjzJPeRInt48U94CfiR-gTc8DLz9A
Timestamp: 2019-07-24 01:15:41
Document Index: 260344701

Matched Legal Cases: ['Art 6', '§6', '§ 6', '§ 6', '§  6', '§ 2']

NY State Assembly Bill A2476A
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
DINOWITZ
Current Bill Status - In Assembly Committee
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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
Bill Amendments
A (Active)
Richard Gottfried
Felix Ortiz
Phil Steck
Victor M. Pichardo
view additional co-sponsors
Walter T. Mosley
Michael Blake
Rebecca Seawright
Rodneyse Bichotte
Vivian Cook
William Colton
Sandy Galef
David Buchwald
Multi-Sponsors
Maritza Davila
Deborah Glick
Jo Anne Simon
A2476 - 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 - 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 - Bill Text download pdf
S T A T E   O F   N E W   Y O R K
2019-2020 Regular Sessions
I N  A S S E M B L Y
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:
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.
LBD00750-01-9
A. 2476                             2
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
INVESTMENTS MAY NOT HAVE  THE  BEST  COMBINATION  OF  FEES,  RISKS,  AND
EXPECTED  RETURNS  FOR  YOU." THE NON-FIDUCIARY INVESTMENT ADVISOR SHALL
PROVIDE A COPY OF THE DISCLOSURE FORM TO THEIR CLIENT.
2. A SIGNED ACKNOWLEDGEMENT BY THE CLIENT  THAT  THIS  PLAIN  LANGUAGE
DISCLOSURE  WAS PROVIDED MUST BE MAINTAINED BY THE NON-FIDUCIARY INVEST-
MENT ADVISOR ALONGSIDE ANY WRITTEN CLIENT AGREEMENT.
3. ANY INVESTMENT BROCHURES, ADVERTISING MATERIALS, OR  OTHER  RELATED
PRINTED  INFORMATION PROVIDED TO CLIENTS, OR ANY SUBSEQUENT ORAL INVEST-
MENT ADVICE TO THEM, MUST ALSO INCLUDE SUCH DISCLOSURE SET  FORTH  IN  A
CLEAR AND CONSPICUOUS MANNER. THE NON-FIDUCIARY INVESTMENT ADVISOR SHALL
4.  INVESTMENT  ADVISORS  THAT ARE SUBJECT TO THE FIDUCIARY DUTY UNDER
LAW OR APPLICABLE STANDARDS OF  PROFESSIONAL  CONDUCT  WITH  RESPECT  TO
CERTAIN  TYPES  OF  INVESTMENT  ADVICE  BUT NOT OTHERS, MUST DISCLOSE IN
PLAIN LANGUAGE THE EXTENT TO WHICH THE FIDUCIARY DUTY DOES AND DOES  NOT
§  6-103.  ENFORCEMENT. WHENEVER THE ATTORNEY GENERAL FINDS THAT THERE
HAS BEEN A VIOLATION OF THIS ARTICLE, HE OR SHE MAY PROCEED AS  PROVIDED
IN SUBDIVISION TWELVE OF SECTION SIXTY-THREE OF THE EXECUTIVE LAW. CIVIL
PENALTIES  UP TO FIVE THOUSAND DOLLARS MAY BE IMPOSED FOR EACH VIOLATION
OF THIS ARTICLE.
§ 2. This act shall take effect on the first of January next  succeed-
ing the date on which it shall have become a law.
View More (31 Lines)
Fred Thiele
A2476A (ACTIVE) - Details
A2476A (ACTIVE) - Summary
A2476A (ACTIVE) - Bill Text download pdf
2476--A
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-
THE  PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
Section 1. The general obligations law is  amended  by  adding  a  new
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.
SHALL  MAKE  A PLAIN LANGUAGE DISCLOSURE TO POTENTIAL CLIENTS ORALLY AND
LBD00750-05-9
A. 2476--A                          2
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
REQUIRED  DISCLOSURE SHALL STATE THE FOLLOWING: "A NON-FIDUCIARY INVEST-
MENT ADVISOR IS NOT REQUIRED BY LAW TO ACT SOLELY IN THE  CLIENT'S  BEST
INTEREST.  FEDERAL LAW, STATE LAW, AND STANDARDS OF PROFESSIONAL CONDUCT
DO NOT APPLY A FIDUCIARY  STANDARD  TO  MY  INVESTMENT  RECOMMENDATIONS,
ALTHOUGH  OTHER  STANDARDS MAY APPLY. YOU MAY ASK ANY ADVISOR TO EXPLAIN
TO YOU THE STANDARDS THAT APPLY TO  THEIR  INVESTMENT  RECOMMENDATIONS."
THE NON-FIDUCIARY INVESTMENT ADVISOR SHALL PROVIDE A COPY OF THE DISCLO-
SURE FORM TO THEIR CLIENT.
2.  A  WRITTEN  CLIENT  AGREEMENT  MUST  INCLUDE  A  SEPARATELY SIGNED
ACKNOWLEDGEMENT BY THE CLIENT THAT THIS PLAIN  LANGUAGE  DISCLOSURE  WAS
PROVIDED. THE NON-FIDUCIARY INVESTMENT ADVISOR SHALL MAINTAIN THE SIGNED
ACKNOWLEDGEMENT ALONGSIDE THE WRITTEN CLIENT AGREEMENT.
3.  INVESTMENT  BROCHURES,  ADVERTISING  MATERIALS,  OR  OTHER RELATED
PRINTED INFORMATION PROVIDED TO POTENTIAL CLIENTS MUST ALSO INCLUDE SUCH
DISCLOSURE SET FORTH IN A CLEAR AND CONSPICUOUS MANNER.
4. INVESTMENT ADVISORS THAT ARE SUBJECT TO A FIDUCIARY STANDARD  UNDER
STATE  OR  FEDERAL  LAW OR REGULATION OR APPLICABLE STANDARDS OF PROFES-
SIONAL CONDUCT WITH RESPECT TO CERTAIN TYPES OF  INVESTMENT  ADVICE  BUT
NOT  OTHERS,  MUST  DISCLOSE  IN PLAIN LANGUAGE IN WRITING THE EXTENT TO
WHICH THE FIDUCIARY STANDARD APPLIES  IN  THE  CONTEXT  OF  EACH  CLIENT
RELATIONSHIP.
View More (37 Lines)
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