House Study Bill 213 - Introduced HOUSE FILE _____ BY (PROPOSED COMMITTEE ON JUDICIARY BILL BY CHAIRPERSON HOLT) A BILL FOR An Act providing for the expungement of information regarding 1 investment advisers and investment adviser representatives 2 authorized to do business in this state. 3 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA: 4 TLSB 1840YC (4) 90 da/jh

H.F. _____ Section 1. NEW SECTION . 502.511 Investment advisers and 1 investment adviser representatives —— expungement of certain 2 reported information. 3 1. An investment adviser authorized to do business in this 4 state under this chapter, including as provided in section 5 502.403, or an investment adviser representative authorized 6 to do business in this state under this chapter, including as 7 provided in section 502.404, may petition the district court 8 sitting in equity to expunge information in a record controlled 9 by the financial industry regulatory authority. 10 2. The commissioner of insurance shall be the respondent 11 in the proceeding. If the record described in subsection 1 12 includes confidential information that was part of a judicially 13 enforceable arbitration decision, the party to the arbitration 14 proceeding who reported the information to the financial 15 industry regulatory authority shall also be a respondent in the 16 proceeding. 17 3. The district court may grant relief by ordering the 18 expungement of the information in the record described in 19 subsection 1, if all of the following apply: 20 a. The information makes an allegation about the investment 21 adviser or investment adviser representative. 22 b. The information has been publicly disclosed. 23 c. Any of the following apply: 24 (1) The petitioner was not involved in the event that 25 resulted in the creation of the record. 26 (2) The information in the record is erroneous or impossible 27 to be true. 28 (3) The information in the record is defamatory. 29 d. A decision in an administrative, judicial, or arbitration 30 proceeding found that the petitioner did not act in a manner 31 described by the record. 32 e. The court determines that equitable principles require 33 that such relief be granted. 34 4. If a court grants relief under this section, the 35 -1- LSB 1840YC (4) 90 da/jh 1/ 2

H.F. _____ information in the record and any copies of the record shall 1 be destroyed. 2 5. Notwithstanding section 614.1, a petition may be filed 3 and relief granted as provided in this section at any time. 4 EXPLANATION 5 The inclusion of this explanation does not constitute agreement with 6 the explanation’s substance by the members of the general assembly. 7 This bill provides that a person who is an investment 8 adviser, or an investment adviser representative, authorized 9 to do business in this state under Iowa’s blue sky law, 10 including by satisfying certain registration requirements under 11 Code section 502.403 or 502.404, may petition the district 12 court sitting in equity for relief in the form of ordering 13 the expungement of information in a record controlled by 14 the financial industry regulatory authority (FINRA). The 15 respondents in the case must include the commissioner of 16 insurance and any party to a judicially enforceable arbitration 17 proceeding who reported the information to FINRA. The district 18 court may grant the relief by ordering the expungement of 19 the information under certain conditions, including: the 20 petitioner was not involved in the event that resulted in 21 the creation of the record; the information is erroneous, 22 impossible to be true, or defamatory; a decision in an 23 administrative, judicial, or arbitration proceeding found 24 that the petitioner was not liable for acting in a manner 25 described in the record; or the court determines that equitable 26 principles require such relief. The statute of limitations or 27 the doctrine of laches does not apply. 28 -2- LSB 1840YC (4) 90 da/jh 2/ 2