Missouri secretary of state proposes ESG transparency rules

Missouri Secretary of State Jay Ashcroft is proposing new transparency rules related to environmental, social and governance polices at companies.

Ashcroft in a news release this week announced he submitted language to his office's administrative rules division seeking to require that investment advisers and broker-dealers disclose and advise their clients of any investment strategy that is not only financial based.

“As many mutual funds, brokerage firms and robo-advisers now offer investment products that employ ESG principles, this rule establishes parameters that will foster full disclosure and transparency when someone is investing their hard-earned money,” Ashcroft said in the release. "We are hopeful the legislature will take the next step and pass laws relating to full disclosure advising.”

The proposed rule, Ashcroft said, would better protect investors.