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Missouri State Treasurer Vivek Malek Files Brief Supporting Transparency in Investment Practices

Monday, July 01, 2024
Treasurer's name


Contact: Kern Chhikara, 573-751-5390

JEFFERSON CITY, MO - Missouri State Treasurer Vivek Malek has filed a friend-of-the-court amicus curiae brief in federal court supporting Secretary of State Jay Ashcroft's rules requiring greater transparency from investment professionals.

The case, brought by the Securities Industry and Financial Markets Association (SIFMA), an out of state trade association, against Secretary Ashcroft, challenges new rules requiring broker-dealers and investment advisers to disclose when they incorporate social or other nonfinancial objectives into investment decisions.

"As custodian of all state funds, I have a responsibility to ensure that Missourians have full transparency in how their money is being invested," said Treasurer Malek. "These rules are essential for protecting investors and preventing fraud."

Key points from the Treasurer's brief include:

- The disclosures required by Secretary Ashcroft's rules are material facts that reasonable clients would consider important in making investment decisions.

- The rules are necessary to protect investors and are within the essential powers reserved by the State of Missouri.

- The State Treasurer is responsible for investing state funds. These disclosures are material to the process of evaluating opportunities and for determining the soundness of securities received as collateral for state investments.

Treasurer Malek emphasized that the rules do not prohibit considering social or nonfinancial objectives but simply require transparency when such factors influence investment decisions, offerings, or advice.

"Missourians deserve to know all the factors influencing how their money is invested," Malek added. "These disclosure rules ensure that investors have the information they need to make informed decisions."

The case is currently pending in the U.S. District Court for the Western District of Missouri.



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