February 1, 2023 Less than a minute read

Missouri Chamber opposes new mandate on financial institutions

The Missouri Chamber of Commerce and Industry is opposing an additional regulatory burden that some lawmakers are looking to place on the state’s financial institutions.

On Jan. 31, 2023, the House Financial Institutions Committee heard a bill that would put a new mandate on Missouri’s financial advisors. House Bill 824 requires clients to sign a written consent form if certain financial advice is given. The form would be required at the beginning of an advisor-client relationship, as well as any time advice is given or a transaction occurs.

Missouri would be the only state to require this disclosure.

The Missouri Chamber of Commerce and Industry opposes the legislation. Phillip Arnzen, director of legislative affairs for the Missouri Chamber, testified at the hearing.

“The definitions in here are difficult to determine what they really mean. There’s no clarification on what a social or environmental goal means, or what a nonfinancial objective is. So, out of an abundance of caution, almost every financial firm, from your local mom-and-pop brokerage on the corner of your town square to the largest financial firms, would require this disclosure on every single transaction,” Arnzen said. “That could potentially be millions of additional forms that have to be signed every year in the state of Missouri.”

For more information, contact Arnzen at parnzen@mochamber.com or 573-634-3511.

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