08.14.24

U.S. Judge Blocks Missouri Rule Curbing Socially-Conscious Investing

by: Daniel Wiessner

A federal judge in Missouri struck down the state's rule limiting the ability of financial professionals to consider environmental, social and governance (ESG) factors in giving investment advice. U.S. District Judge Stephen Bough in Kansas City agreed with the Securities Industry and Financial Markets Association that the 2023 rule was invalid because it imposed requirements on investment banks and broker-dealers that do not exist in federal law. The rule issued by Missouri Secretary of State Jay Ashcroft would require investment advisors who consider ESG objectives to disclose them to customers and obtain their consent.

Read the full article on Reuters