Memo #
35958

DRAFT Letter to Missouri Secretary of State on Proposed Rule 15 CSR 30-51.174, Fraudulent Practices of Investment Advisers and Investment Adviser Representatives
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[35958]

December 16, 2024

TO: ESG Advisory Group
Investment Advisers Committee
SEC Rules Committee RE: DRAFT Letter to Missouri Secretary of State on Proposed Rule 15 CSR 30-51.174, Fraudulent Practices of Investment Advisers and Investment Adviser Representatives

 

The Missouri Secretary of State has proposed the attached rule amendment applicable to investment advisers and investment adviser representatives which would deem effecting any transaction with an investment objective not authorized by a client to be a fraudulent act in Missouri.[1]  The rule excludes federally registered investment advisers but appears to apply to certain investment adviser representatives.  In the attached draft comment letter, we:

  • identify a NSMIA preemption issue;
  • note that the rule as applied to IARs of federally registered advisers is unnecessary because of existing fiduciary duty requirements; and
  • recommend that Missouri specifically exclude IARs of federally registered advisers. 

Please submit any comments on the letter to joshua.weinberg@ici.org by Thursday, December 19.

 

Joshua Weinberg
Associate General Counsel, Securities Regulation

Notes

[1] Links to prior ICI memos on the topic can be found below:

    Attachments

    35958b.pdf

    Tags

    ESG
    United States ESG