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Your professionally curated research and reference resource fully integrating treatise and how-to guidance with underlying laws, rules, interpretations, and hundreds of sample documents.

In Memorium:  Mark Rubinstein

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A true but oft forgotten pioneer of the ETF industry, Professor Mark Rubinstein, has passed away. He was a long-time UC Berkeley finance professor who laid the ground-work for the first U.S. ETF, The SuperTrust. We are truly sad to see his intellect and wisdom leave this realm....his influence will be felt for many years to come. Please click the "View More link above to access his obituary.

Adviser Regulatory & Compliance News

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New Textbook Available:  Investment Management Regulation

June 7, 2019

We're pleased top announce that Karl is co-author of the first new textbook about the '40 Acts in over 30 years! Investment Management Regulation: An Introduction to Principles and Practices. Available now at cap-press.com Just click on the headline to this blurb above to be taken to the publisher's site. As Members you are entitled to a 30% discount at the Carolina Academic Press's site. Please use the discount code, IMR2019. Valid until Sept. 30th, 2019. If you are a professor teaching this material, you may order a free review copy at the site.

Caveat Emptor:  SEC’s Best Interest Fiduciary Initiatives Adopted

June 6, 2019

It’s a matter of caveat emptor: buyer beware. After many months of consideration, investor testing/surveying, and circa 6,000 comment letters, the SEC acted in early June 2019 to enhance the protection of retail investors while not materially disrupting the existing investment industry business models and the ability of investors to choose among different types of providers such as advisers and brokers. The key measures adopted are as follows: • New Regulation BI (as in "Best Interest")…generally referred to as “Reg. BI;” • New Form CRS (i.e., "Customer Relationship Summary"); • Interpretive advice re: an investment adviser's fiduciary duties; and • An interpretation of the "solely incidental" aspect of the broker-dealer exclusion from the definition of an "investment adviser" under the Advisers Act. The new Reg. BI will go into effect in about a year (following formal publication of the new regulation). Many think that this will bring an end to the long journey and discussion regarding fiduciary duties of advisers and brokers. In reality, it really is a matter of caveat emptor both for the industry and retail investors. Much will be written in the coming months about the likely impact of the new measures. As a practical matter, advisers and brokers must review their policies and procedures (such as disclosure and customer on-boarding processes) to assure compliance in the future. PLEASE BE SURE TO CLICK THE HEADLINE TO THIS BLURB TO ACCESS AN EXTENSIVE RESOURCE COLLECTION ON THE NEW INITIATIVES.

Found:  Dechert’s Summary Site on the DoL and State Fiduciary Rules

June 5, 2019

Dechert has published an aggregation page on its website for all key actions, legislation, rulemaking, and judicial decisions regarding the Department of Labor's now dead fiduciary rule under ERISA. In addition, the page highlights and tracks the efforts of various states to implement fiduciary standards. However, the page does not integrate the SEC's efforts in this area, notably Reg. BI and related initiatives. Please click the headline to this blurb to access the Dechert site. Thanks to Dechert for making this material available.

Presidential Executive Order May Impact ESG Investing

June 1, 2019

While not covered in the Dechert paper on ESG investing (see our May 31 blog posting), a recent Presidential Executive Order is an example of how ESG investing may be impacted by the vagaries of politics. In early April 2019, an Executive Order was issued directing the Department of Labor ("DOL") to assess, among other things, how the energy industry is being impacted by the proxy voting of retirement plans. Specifically, the Order directs DOL to do the following, within 180 days of the date the Order was issued: 1. Complete a review of available data filed with DOL by retirement plans subject to the ERISA in order to identify whether there are discernible trends with respect to such plans’ investments in the energy sector; 2. Provide an update to the Assistant to the President for Economic Policy on any discernible trends in energy investments by such plans; and 3. Complete a review of existing DOL guidance on the fiduciary responsibilities for proxy voting to determine whether any such guidance should be rescinded, replaced, or modified to ensure consistency with current law and policies that promote long-term growth and maximize return on ERISA plan assets. A copy of the order can be accessed by clicking the headline to this blurb.

Upcoming Events

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