Bill Text: CT HB07152 | 2017 | General Assembly | Introduced

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Bill Title: An Act Requiring Financial Planners To Act In The Best Interest Of Their Clients And To Disclose Conflicts Of Interests.

Sponsorship: Committee Bill

Status: (Introduced - Dead) 2017-02-24 - Public Hearing 03/02 [HB07152 Detail]

Download: Connecticut-2017-HB07152-Introduced.html

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General Assembly		Raised Bill No. 7152
January Session, 2017		LCO No. 4387
		*04387_______BA_*
Referred to Committee on BANKING
Introduced by:
(BA)

AN ACT REQUIRING FINANCIAL PLANNERS TO ACT IN THE BEST INTEREST OF THEIR CLIENTS AND TO DISCLOSE CONFLICTS OF INTERESTS.

Be it enacted by the Senate and House of Representatives in General Assembly convened:

Section 1. (NEW) (Effective October 1, 2017):

(a) A financial planner shall disclose to any person, upon such person's request, whether the financial planner has a fiduciary duty to such person or any financial interest in the advice the financial planner provides or offers to such other person and, if so, the precise nature of such interest. For the purpose of this section "financial planner" means any person who, for compensation, is engaged in the business of providing individualized financial planning or investment advice to another person with respect to (1) an annuity or mutual fund custodial account under Section 403(b) of the Internal Revenue Code of 1986, or any subsequent corresponding internal revenue code of the United States, as amended from time to time, or (2) a plan under Section 457 of the Internal Revenue Code of 1986, or any subsequent corresponding internal revenue code of the United States, as amended from time to time, and whose activities are not otherwise regulated under the Employee Retirement Income Security Act of 1974, as amended from time to time.

(b) The Department of Banking shall adopt regulations, in accordance with the provisions of chapter 54 of the general statutes, to implement and administer the provisions of this section. Such regulations shall be guided by the United States Department of Labor's Final Rule concerning the definition of the term fiduciary and conflicts of interest regarding retirement investment advice published in the Federal Register of April 1, 2016. (1) "Fiduciary duty" means a duty to act in the best interest of a person and to render advice to such person based upon such person's particular financial or investment needs.

This act shall take effect as follows and shall amend the following sections:
Section 1	October 1, 2017	New section

Statement of Purpose:

To provide protections to consumers who receive investment advice from financial planners.

[Proposed deletions are enclosed in brackets. Proposed additions are indicated by underline, except that when the entire text of a bill or resolution or a section of a bill or resolution is new, it is not underlined.]