REGULATORY UPDATES
Policy Initiatives Set Forth by the U.S. Securities and Exchange Commission’s (“SEC”) Investment Management Division
On September 28, 2018, Division of Investment Management (the “Division”) Director Dalia Blass testified before the House Subcommittee on Capital Markets, Securities, and Investments regarding current activities and initiatives being undertaken by the Division. The Division follows three main principles when developing and implementing policy: (1) improving the retail investor experience; (2) modernizing the Division’s regulatory framework and engagement with industry participants; and (3) leveraging resources efficiently. With respect to improving the retail investor experience, the SEC proposed a rulemaking package that would require firms to provide investors with a “relationship summary” highlighting differences between broker-dealers and investment advisers, including services, applicable legal standards, fees, and potential conflicts of interest. The Division also recommended a proposed interpretation reaffirming and clarifying the SEC’s views on fiduciary duty standards. As to modernizing disclosure, Blass…
