U.S. Federal Court Strikes Down Missouri Anti-ESG Investing Rule

A U.S. federal court has blocked new Missouri regulations that aimed to restrict financial professionals from integrating environmental, social, and governance (ESG) considerations into investment advice. The court ruled the regulation, which required clients’ written consent to include nonfinancial objectives in investment recommendations, was unconstitutionally vague. The Securities Industry and Financial Markets Association (SIFMA) challenged the rule, arguing it could unfairly encompass other financial considerations. The court issued a permanent injunction against the rule, finding it problematic due to its vague language and harsh penalties. SIFMA President Kenneth E. Bentsen, Jr. praised the decision, asserting that the existing federal laws already ensure financial professionals act in their clients’ best interests. Resources: https://www.esgtoday.com/u-s-federal-court-strikes-down-missouri-anti-esg-investing-rule/