Relates to mandating greater levels of disclosure by non-fiduciaries that provide investment advice; requires signed acknowledgement of disclosure informing clients that the advisor owes no fiduciary duty.
An act to amend Sections 6501, 6534, 6561, 6584, and 6592 of, and to add Article 7 (commencing with Section 6593) to Chapter 6 of Division 3 of, the Business and Professions Code, to amend Section 13401 of the Corporations Code, and to amend Sections 60.1, 1510, 1821, 2250, 2614.7, and 2643.1 of, to add Part 9.5 (commencing with Section 310) to Division 2 of, and to repeal Section 2340 of, the Probate Code, relating to professional fiduciaries.
To amend the Securities Exchange Act of 1934 to require certain disclosures by institutional investment managers in connection with proxy advisory firms, and for other purposes.
AN ACT relating to corporations, partnerships and associations; requiring proxy advisors to disclose when proxy advisory services are not based on a written financial analysis as specified; requiring proxy advisors to disclose when proxy advisory services are based on a written financial analysis as specified; requiring proxy advisors to disclose proxy advisory services on their websites as specified; authorizing the secretary of state to discipline registered investment advisers for violations of the disclosure requirements; providing definitions; providing legislative findings; providing for a penalty; providing for a civil cause of action; making conforming amendments; providing rulemaking authority; specifying applicability; and providing for effective dates.
Requires fiduciaries of public retirement systems to make investment decisions based solely on financial factors. (6/30/25) (OR SEE ACTUARIAL NOTE APV)