Prohibiting discrimination by financial services companies on the basis of social credit score and requiring registered investment advisers to obtain written consent from clients prior to investing client moneys in mutual funds, equity funds, companies and financial institutions that engage in ideological boycotts.

SB 16 prohibits financial services companies from using social credit scores to discriminate against consumers. It also requires registered investment advisers to obtain written client consent before investing funds in mutual funds, equity funds, or companies that boycott businesses based on ideological reasons (such as fossil fuel production, agriculture, gun manufacturing, or environmental policies). The bill defines "ideological boycott" as actions taken without a legitimate business purpose to penalize companies for their industry, environmental stance, or social policies. This directly affects investment advisers, financial institutions, and their clients by changing how investments are managed and disclosed.