New ESG investing restrictions in Missouri are facing a federal court challenge from a leading finance industry group that says the curbs are burdensome and violate US law.
The Securities Industry and Financial Markets Association filed a lawsuit Thursday against Missouri Secretary of State Jay Ashcroft (R) over the environmental, social, and governance limits on investment firms. Ashcroft finalized rules in June that require brokers and investment advisers to get their clients’ written consent to include any “social objective or other nonfinancial objective” in their investing strategies.
The rules interfere with the Securities and Exchange Commission’s power to regulate investment ...
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