Memo #
35970

ICI Submits 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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[35970]

December 30, 2024

TO: ICI Members
ESG Advisory Group
Investment Advisers Committee
SEC Rules Committee SUBJECTS: State Issues RE: ICI Submits 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 a rule 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 comment letter dated December 30, 2024, we:

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

 

Joshua Weinberg
Associate General Counsel, Securities Regulation

Notes

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

    Attachments

    35970a.pdf

    Tags

    Investment Advisers
    State Issues
    United States ESG