| May 1, 2018

SEC Standard of Conduct for Inv Pros

Dalia Blass,
SEC, Director, Division of Investment Management

Dalia Blass, who last September was named the SEC’s head of investment management (David Blass, her husband, spoke at CSI NY last year about some of the industry developments), addressed the Standards of Conduct for Investment Professionals in NY this month.

The commission on April 18th published “regulation best interest” – proposing enhancements to the standards of conduct for B/Ds, and clarified views on fiduciary duties of financial advisors.

SEC Chair Clayton last week also testified that the best interest proposals are a priority for FY2019. Both said the commission’s efforts are the result of over two decades of thinking and experience, as part of his $1. 7b budget request. A modest increase is earmarked to fill 100 vacancies post hiring freeze.

Blass divided the three areas of the proposals as follows:

  1. Clarity for retail investors about investment professionals (what kind of person is advising them, e. G. RIA, registered B/D, et al, and the use of “adviser” and “advisor”), including a “relationship summary”.
  2. Enhanced standard of Conduct for B/Ds
  3. Clarity around Standards of Conduct for I/As
    The public comment period will remain open for 90 days following publication of the documents in the Federal Register.

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Daniel Enskat

Daniel has written over a dozen books on the global asset management industry and has lectured at universities around the world alongside speakers such as Secretary of State John Kerry, Dr. Mark Mobius, ex-Fed Chairman Alan Greenspan, Professor KC Chan and former Prime Minister Gerhard Schroeder.

He is widely sought after for presentations, discussions and his perspective on the global asset management industry, and in the last two decades has advised hundreds of investment management CEOs on strategy and global expansion.

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