Secretary of State Jay Ashcroft speaks Tuesday during a news conference at his Jefferson City office. (Rudi Keller/Missouri Independent)
State lawmakers were informed last week that it will cost taxpayers $1.2 million to defend a rule on investment brokers that Secretary of State Jay Ashcroft says is designed to stop “ politically motivated ” financial advisers who want to “fritter away Missourians’ money.”
Ashcroft issued a new rule in July targeting environmental, social and governance , or ESG, investing. His rule requires brokers and investment advisers to obtain annual, written consent to recommend an investment, or actually place any client funds in account that “incorporates a social objective or other non financial objective” for a reason “not solely focused on maximizing a financial return.”
Shortly after the rule took effect, it was challenged in federal court by the Security Industries and Financial Markets Association, which claims Ashcroft is imposing conditions on the industry that violate federal law and the Constitution’s First Amendment.