A number of law school professors posted a statement on the CLS Blue Sky Blog (a Columbia Law School blog re. capital markets) regarding the SEC’s recent interpretive release on the standard of conduct for investment advisers. In one paragraph, the professors state:
“Historically, investment advisers were subject to a fiduciary duty, whereas, in the case of brokers, their duty depended on state law. In adopting Regulation Best Interest, the Commission has taken an ambiguous position that may raise the standard for brokers marginally (there is much debate on this point). But it has done so by lowering the standard for investment advisers. We fear this more than offsets any possible improvement in the new standard for brokers.”
George Michael Gerstein advises financial institutions on the fiduciary and prohibited transaction provisions of ERISA. As co-chair of the fiduciary governance group, he assists clients with tracking, and understanding, the numerous fiduciary developments at the federal and state levels, including the rules and regulations of governmental plans. He also advises clients with respect to the fiduciary duty implications of ESG investing.