The SEC is proposing major changes to the rules governing private markets to help young companies raise capital and to expand retail investor access to private markets. CFA Institute argues that the proposal would weaken investor protections and tip the balance yet further against public markets.
The fact that firms are transitioning toward a registered investment advisory business model due to Reg BI cannot help but boost the standard for investment advice. Whether or not the advice of this cadre of newly minted investment advisers will be conflicted, as registered advisers they will be bound by a common law fiduciary duty that will lower the thresholds for investor claims on bad guidance. A positive step for investors.
In a nutshell, the new rule says fiduciaries cannot sacrifice returns to achieve some other objective, such as societal considerations or other nonfinancial concerns.
Last week, US Securities and Exchange Commission (SEC) Chair Jay Clayton spoke on a webcast sponsored by FCLTGlobal. He discussed his views on environmental, social, and governance (ESG) disclosures and the SEC’s responsibilities to investors —… READ MORE ›