Connecticut Seal

General Assembly

 

Raised Bill No. 6992

January Session, 2017

 

LCO No. 3300

 

*03300_______AGE*

Referred to Committee on AGING

 

Introduced by:

 

(AGE)

 

AN ACT PROTECTING THE INTERESTS OF CONSUMERS DOING BUSINESS WITH FINANCIAL PLANNERS.

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

Section 1. (NEW) (Effective from passage) (a) For purposes of this section and section 2 of this act, (1) "fiduciary duty" means a duty to act with prudence in the best interests of a consumer with undivided loyalty to such consumer, and (2) "financial planner" means a person offering individualized financial planning or investment advice to a consumer for compensation whose advice to the consumer is not otherwise regulated under the Employee Retirement Income Security Act of 1974, the Investment Advisers Act of 1940 or the Securities Exchange Act of 1934, as said acts are amended from time to time.

(b) No financial planner shall, in connection with an agreement with a consumer to provide financial planning or investment advice for compensation, use a certificate, professional designation or form of advertising expressing or implying that such person has special training, education or experience in advising or serving senior citizens, unless such person has obtained a certificate, title or designation in accordance with the provisions of section 36b-4 of the general statutes.

(c) A financial planner shall disclose to a consumer, upon request, whether or not such financial planner has a fiduciary duty to such consumer for each recommendation such financial planner makes to such consumer.

Sec. 2. (NEW) (Effective from passage) The Commissioner of Consumer Protection, in consultation with the Banking Commissioner, shall provide on the Internet web site of the Department of Consumer Protection, a link to a list of (1) financial planners and other financial planning professionals doing business in the state who are required to act in a consumer's best interests pursuant to their certification by the Certified Financial Planner Board of Standards, and (2) information on requirements for investment advisers pursuant to chapter 672a of the general statutes. The Commissioner of Consumer Protection shall also include on the department's Internet web site information concerning a consumer's right to ask for disclosure from financial planners or other financial planning professionals about fees and compensation as required under applicable state and federal law.

Sec. 3. (NEW) (Effective from passage) If any provision of sections 1 and 2 of this act is held invalid, such invalidity shall not affect other provisions of said sections, in accordance with section 1-3 of the general statutes.

This act shall take effect as follows and shall amend the following sections:

Section 1

from passage

New section

Sec. 2

from passage

New section

Sec. 3

from passage

New section

Statement of Purpose:

To provide protections for 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.]