The Federal Court Strikes Down Missouri’s ‘Woke Politics’ Investment Rule

A federal judge has overturned Missouri investment regulations that Republican Secretary of State Jay Ashcroft had promoted as a means to expose financial institutions that prioritise ESG or other such social objectives over investment returns.

According to the court ruling, the regulations issued by Ashcroft’s office violated the free speech rights of investment professionals and were overridden by federal law.

The state’s largest business association hailed the decision as a triumph for free enterprise on Friday.

The office of Ashcroft, which is in charge of upholding state securities laws, established regulations in 2023 that mandate investment professionals have clients’ written authorisation before taking “a social objective or other non-financial objective” into account while making investment decisions.

Raising awareness of investment firms that apply environmental, social, and governance principles was Ashcroft’s declared objective.