Dechert Files a Comment Letter in Response to the SEC’s Proposed Commission Interpretation Regarding Standard of Conduct for Investment Advisers

On August 7, 2018, Dechert LLP filed a comment letter in response to the SEC’s proposed interpretation regarding the standard of conduct for investment advisers and request for comment on enhancing investment adviser regulation. The comment letter identifies the true source of an adviser’s fiduciary duty, discusses how advisers can address material conflicts of interest in order to achieve informed consent, and notes areas where the interpretation can be clarified in terms of its application to institutional clients. Finally, the comment letter explains why enhanced regulation in the areas of federal licensing and continuing education, provision of account statements, and financial responsibility are not necessary.