News

Do hedge funds and ESG make a good couple?

Bloomberg is reporting on how at least some hedge funds are attempting to account for environmental, social & governance (ESG) risks. This asset class has been a particularly tricky one to incorporate ESG factors, and other reports suggest that while institutional investors are clearly asking or pressing their hedge fund managers to address ESG issues, it seems that the hedge fund managers themselves are still trying to sort out just how ESG integration, for instance, can be used by a hedge fund. The article also reveals how terminology around ESG continues to be an issue.

Impact of New SEC Regulation Best Interest and Other Standards of Conduct Rules on Broker-Dealers, Investment Advisers and Investment Companies

In addition to yesterday’s preliminary analysis and next week’s deep-dive, on July 31 @ 1:00 pm EDT, Larry Stadulis, Sara Crovitz and John Baker will host an on-demand webinar to discuss yesterday’s adoption of Regulation Best Interest, Form CRS and other rules and interpretations, and their effect on registered investment advisers, registered broker-dealers and investment companies. They will explain the practical implications for broker-dealers, investment advisers and investment companies on the Securities and Exchange Commission’s (SEC) new standard of conduct rules and guidance. Specifically, they will discuss:

  • Regulation Best Interest: How and why the SEC adopted, and the implications for firms of, a standard of conduct for broker-dealers and their associated natural persons when making a recommendation to a retail customer of any securities transaction or investment strategy involving securities.
  • Form CRS: How and why the SEC adopted, and the implications for firms of, a requirement for registered investment advisers and registered broker-dealers to provide a Form CRS relationship summary to retail investors.
  • Standard of Conduct for Investment Advisers: How and why the SEC adopted, and the implications for firms of, an interpretation of the standard of conduct for investment advisers.
  • “Solely Incidental”: How and why the SEC adopted, and the implications for firms of, an interpretation of the “solely incidental” prong of section 202(a)(11)(C) of the Investment Advisers Act of 1940, which provides that the term “investment adviser” does not include any broker or dealer whose performance of investment advisory services is solely incidental to the conduct of his business as a broker or dealer and who receives no special compensation therefor.

Registration for the webinar can be found here. The webinar will supplement yesterday’s Risk & Reward analysis and our upcoming more detailed analysis, currently slated for next week or soon thereafter.

Stradley’s analysis of new SEC standard of conduct rules forthcoming

Elad Roisman’s written statement on standards of conduct rulemaking

Commissioner Roisman’s written statement on the new rules can be found here.

SEC adopts new standards of conduct rulemaking

Robert Jackson’s written statement on standards of conduct package

Commissioner Jackson’s statement on today’s standards of conduct rules can be found here.

Jay Clayton’s written statement on standards of conduct rules

Chairman Clayton’s statement on today’s standards of conduct package can be found here.

David Grim to Law360: Will the SEC raise preemption in today’s best interest rules?

The time has come for the SEC’s new standards of conduct package

The public hearing begins at 10 am EDT today and can be streamed.

DOL Assistant Secretary confirms the DOL will issue a regulation that “aligns” with Regulation Best Interest