News & Analysis as of

Investment Advisers Act of 1940 Duty of Care

K&L Gates LLP

The SEC Publishes 2024 Examination Priorities Ahead of Schedule, Previewing Key Areas of Focus for Registered Entities

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On 16 October 2023, the Division of Examinations (Division) of the US Securities and Exchange Commission (SEC) released its examination priorities for the 2024 fiscal year (the Report). The Division released this Report...more

Orrick, Herrington & Sutcliffe LLP

ETF, founder to pay SEC $4.4M for misleading trustees

On August 1, the SEC settled for $4.4 million with an investment adviser and entities he founded (collectively, the “respondents”) on charges that they breached both their duty of care and duty of loyalty to their client, an...more

Skadden, Arps, Slate, Meagher & Flom LLP

SEC Staff Raises the Bar for Broker-Dealers Under Regulation Best Interest

On April 20, 2023, the Securities and Exchange Commission (SEC) released a Staff Bulletin (Bulletin) on the care obligations for broker-dealers and investment advisors, pursuant to Regulation Best Interest (Reg BI) and the...more

Dechert LLP

Recent SEC Enforcement Actions Highlight SEC Focus on Adviser Fiduciary Duty When Recommending and Reviewing Account Types

Dechert LLP on

The Securities and Exchange Commission recently brought two enforcement actions that highlight the SEC’s focus on the investment adviser fiduciary duties, particularly as applied to recommendations that clients open or remain...more

Dechert LLP

SEC Publishes Staff Bulletin on the Standards of Conduct for Broker-Dealers’ and Investment Advisers’ Conflicts of Interest

Dechert LLP on

The Securities and Exchange Commission in 2019 issued significant new rules and interpretations addressing the standards of conduct for broker-dealers, in the form of Regulation Best Interest, and the standards of conduct for...more

Faegre Drinker Biddle & Reath LLP

Best Interest Standard of Care for Advisors #27

Regulation Best Interest, RIA Interpretation and Consideration of “Account Types” (Part 3) - The SEC has issued its final Regulation Best Interest (Reg BI), Form CRS Rule, RIA Interpretation and Solely Incidental...more

Eversheds Sutherland (US) LLP

Videocast: Asset management regulation in 2020 videocast series – Fiduciary investment advice: The patchwork emerges

In this Bottom Line videocast, Issa Hanna and Pooja Kohli discuss what to expect in 2020 on standard of conduct developments for broker-dealers and investment advisers, including: Anticipated developments relating to the...more

Winstead PC

It’s the Final Countdown: Being Prepared for Regulation Best Interest

Winstead PC on

Last year the U.S. Securities and Exchange Commission (“SEC”) approved Regulation Best Interest (“Reg BI”). Reg BI requires broker-dealers and their associated persons to act in “the best interest” of a retail customer when...more

Vedder Price

The New Standards for Investor Protection: An Analysis of Regulation Best Interest, Form CRS and Two Interpretations of the US...

Vedder Price on

On June 5, 2019, the Securities and Exchange Commission (the “SEC”) voted three to one to approve a package of rulemakings and interpretations designed to enhance the quality and transparency of investors’ relationships with...more

Faegre Drinker Biddle & Reath LLP

SEC Interpretation Offers Clarification on an Investment Adviser’s Duties of Care and Loyalty

As part of its “Reg BI Package”, approved on June 5, 2019, the Securities and Exchange Commission (the “SEC”) sought to clarify the fiduciary duty that an investment adviser owes to its clients under the Investment Advisers...more

BakerHostetler

SEC Adopts Investment Adviser and Broker-Dealer Rulemaking Package, Highlighted By The New "Best-Interest" Standard

BakerHostetler on

On June 5, 2019, the Securities and Exchange Commission (SEC) voted to adopt a highly anticipated set of rules addressing the standard of conduct of registered investment advisers (RIAs) and broker-dealers aimed at increasing...more

Eversheds Sutherland (US) LLP

New SEC interpretation impacts timberland investment advisors

On June 5, 2019, the US Securities and Exchange Commission adopted a comprehensive package of rulemakings and interpretations governing the standard of conduct applicable to broker-dealers and the fiduciary duty applicable to...more

Latham & Watkins LLP

What Institutional Broker-Dealers Need to Know About Regulation BI

Latham & Watkins LLP on

The SEC’s Regulation Best Interest has important implications for institutionally focused broker-dealers and investment bankers. On June 5, 2019, the US Securities and Exchange Commission (SEC) adopted Regulation Best...more

A&O Shearman

SEC Adopts Interpretive Guidance on Investment Adviser Fiduciary Duty

A&O Shearman on

On June 5, 2019, the Securities and Exchange Commission (the “SEC”) released a long-anticipated interpretation of investment adviser fiduciary duty under Section 206 of the US Investment Advisers Act of 1940 (“the Advisers...more

K&L Gates LLP

SEC Publishes a Roadmap to Navigating the Investment Adviser Fiduciary Duty

K&L Gates LLP on

On June 5, 2019, the U.S. Securities and Exchange Commission (the “SEC”) adopted a final interpretation (the “Interpretation”) of the standard of conduct applicable to investment advisers (“IA”) under the Investment Advisers...more

Morrison & Foerster LLP

SEC Clarifies Investment Adviser Standard of Conduct

On June 5, 2019, the SEC issued an Interpretive Release designed to “reaffirm, and in some cases clarify, the standard of conduct that investment advisers owe to their clients.” The Interpretive Release highlights existing...more

Faegre Drinker Biddle & Reath LLP

The Final Reg BI Package: What to Know and What’s Next

On June 5, 2019, the Securities and Exchange Commission (SEC), led by Chairman Jay Clayton, voted 3 to 1 to approve the four agenda items that encompassed the “Reg BI Package.” These four items were Regulation Best Interest –...more

Akin Gump Strauss Hauer & Feld LLP

SEC Adopts New Interpretation of Fiduciary Duty

On June 5, 2019, the Securities and Exchange Commission (SEC) adopted a comprehensive interpretation (the “Interpretation”) of the fiduciary duties that investment advisers owe to their clients under the Investment Advisers...more

Proskauer Rose LLP

Broker-Dealer and Investment Adviser Standards of Conduct - SEC Adopts Rules and Interpretations

Proskauer Rose LLP on

On June 5, 2019, the Securities and Exchange Commission voted to adopt a package of rulemakings and interpretations, including (i) a new rule creating a standard of conduct for broker-dealers when recommending securities to...more

Dechert LLP

SEC Adopts Enhanced Standard of Conduct for Broker-Dealers and Clarifies Fiduciary Duties of Investment Advisers

Dechert LLP on

The U.S. Securities and Exchange Commission, on June 5, 2019, voted 3-1 in favor of adopting a package of rules, amendments and interpretations (Final Rules) intended to improve the retail investor experience and to provide...more

Vedder Price

Investment Services Regulatory Update - August 2018

Vedder Price on

New Rules, Proposed Rules, Guidance and Alerts – SEC STAFF GUIDANCE AND ALERTS – OCIE Publishes Risk Alert on Compliance Issues Relating to Best Execution – On July 11, 2018, the Office of Compliance Inspections and...more

Akin Gump Strauss Hauer & Feld LLP

SEC Proposes New Interpretation of Fiduciary Duty

On April 18, 2018, the Securities and Exchange Commission (SEC) proposed a new interpretation (the “Proposed Interpretation”) of the fiduciary duties of investment advisers under the Investment Advisers Act of 1940, as...more

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