Bills › 90th General Assembly
Providing for the expungement of information regarding investment advisers and investment adviser representatives authorized to do business in this state
Sponsored by the House Judiciary Committee
Topics:Business & economyCourts & civil lawInsurance
Same legislation: HSB 213
Where it is now
- Done: IntroducedFebruary 27, 2023
- Done: SubcommitteeFebruary 27, 2023
- Done: House committeeMarch 2, 2023
- Done: Passes the HouseMarch 22, 202395–0
- Done: Senate committeeMarch 29, 2023
- Done: Passes the SenateApril 19, 202350–0
- Done: To the GovernorMay 9, 2023
- Done: Signed into lawJune 1, 2023
Signed into law What’s a funnel?
What’s in it
AI summary Investment advisers and their representatives in Iowa can ask a court to remove certain incorrect or unfair information from their professional records. To do this, they must name the commissioner of insurance and the person who reported the information in their legal request. A judge can order this information to be deleted if it is untrue, defamatory, or if a previous legal decision showed the person was not at fault.1
Read the official explanation
404, may petition the district court sitting in equity for relief in the form of ordering the expungement of information in a record controlled by the financial industry regulatory authority (FINRA). The respondents in the case must include the commissioner of insurance and any party to a judicially enforceable arbitration proceeding who reported the information to FINRA. The district court may grant the relief by ordering the expungement of the information under certain conditions, including: the petitioner was not involved in the event that resulted in the creation of the record; the information is erroneous, impossible to be true, or defamatory; a decision in an administrative, judicial, or arbitration proceeding found that the petitioner was not liable for acting in a manner described in the record; or the court determines that equitable principles require such relief. The statute of limitations or the doctrine of laches does not apply.
Changed since by amendments H-1305, H-1272, S-3154; see Amendments.
Senate subcommittee
Named March 23, 2023. On March 27, 2023 it recommended passage. [].
Three legislators hear a bill first and recommend what the committee should do; it’s the best time to weigh in. How to take part
Fiscal note
Cost: up to $125,000 Compare with other bills
AI summary This bill allows investment advisors or their representatives to petition a court to have certain information in their records removed. It is estimated to cost the state's General Fund between $84,000 and $125,000 in fiscal year 2024 to hire an additional compliance officer.3
Read the fiscal note
Description
House File 648 establishes a new section under Iowa Code chapter 502. The Bill allows an investment advisor, or an investment advisor representative authorized to do business under Iowa’s Uniform Securities Act (Blue Sky Law), to petition a district court sitting in equity for relief by ordering the expungement of information in a record controlled by the Financial Industry Regulatory Authority (FINRA). The Bill requires the Commissioner of Insurance to act as a respondent in court proceedings.
Background
Currently, Iowa Code section 502.602 permits a person to file an application for relief from a request to appear, testify, file a statement, produce records, or obey a subpoena in a district court. Iowa’s Blue Sky Law regulates broker-dealers, agents, investment advisors, investment advisor representatives, and federal covered investment advisors.
Assumptions
- According to the Iowa Insurance Division, an additional 1.0 full-time equivalent (FTE) Compliance Officer 2 position will be needed to work and process these new cases.
- The minimum annual cost for a Compliance Officer 2 position is estimated at $84,000. The maximum annual cost is $125,000.
Fiscal Impact
The fiscal impact of HF 648 to add a Compliance Officer 2 position to the Iowa Insurance Division will cost between $84,000 and $125,000 to the General Fund in FY 2024.
Source
- Iowa Insurance Division
- Investment Advisor Public Records, Expungement · March 21, 2023 · $125,000
Family tree
Study bill
90th General Assembly