Regulatory Alerts2019-07-12 | 2019-12208Added
Commission Interpretation Regarding Standard of Conduct for Investment Advisers
The Securities and Exchange Commission issued this final interpretation to reaffirm and clarify the fiduciary duty investment advisers owe to their clients under Section 206 of the Investment Advisers Act of 1940. The document establishes that this duty comprises a duty of care requiring advice in the client's best interest and a duty of loyalty requiring the adviser to eliminate or disclose conflicts of interest. It applies to all registered and exempt investment advisers, emphasizing that the standard is principles-based and determined by the scope of the adviser-client relationship.
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