Iowa House Bill HSB213

Iowa 2023-2024 Regular Session

• Introduced: 2/27/23
• Refer: 2/27/23

Caption

A bill for an act providing for the expungement of information regarding investment advisers and investment adviser representatives authorized to do business in this state.(See HF 648.)

Impact

The proposed law would substantially impact how investment advisers manage their professional reputations by enabling them to seek legal recourse to remove potentially damaging allegations from their records. If enacted, this bill may lead to a shift in how investment advisers approach their liability and disclosure obligations when it comes to past professional conduct, thereby encouraging a more favorable environment for these professionals within the state's financial services landscape. It reflects a growing emphasis on personal accountability and equity in the financial advisory sector.

Summary

House Study Bill (HSB) 213 proposes new legislation that allows investment advisers and investment adviser representatives in Iowa to expunge specific information from records controlled by the Financial Industry Regulatory Authority (FINRA). Under the bill, these advisers may petition the district court to have their records expunged, which includes information that has been publicly disclosed and alleged against them. The legislation is designed to protect the reputations of investment professionals who may have unjust implications recorded against them, providing a mechanism for ensuring that only accurate and just information is available to the public.

Contention

During discussions surrounding HSB 213, various points of contention may arise, particularly regarding the implications of expunging records that have been made public. Proponents argue that the bill promotes fairness and justice for investment advisers, allowing them to regain their standing in the industry after erroneous or defamatory information has been recorded against them. However, opponents may raise concerns about the potential for misuse of the expungement process, effectively allowing individuals to conceal past misconduct or regulatory breaches from public scrutiny, which could undermine trust in the financial advising profession.