Share

New Guidance on Disclosure Obligations for Investment Advisers: Compensation and Conflicts

Alert
11.06.2019
By Eric Mikkelson and Abraham Sotelo

The Securities and Exchange Commission's (SEC) Division of Investment Management published new guidance in the form of Frequently Asked Questions on October 18, 2019. The FAQ focused on investment advisor disclosure obligations to clients related to various forms of direct and indirect compensation, and the related conflicts of interest such compensation can create for the advisers. The FAQ provides specific examples with respect to 12b-1 fees, revenue-sharing and mutual fund share classes, among other specific sample disclosures. The FAQ also provides more broadly applicable compensation-related conflict disclosure and mitigation recommendations to help advisers comply with their fiduciary obligations.

View the full text of FAQ. 

View a summary of the FAQ.

Subscribe to Stinson's
News & Insights
Jump to Page

We use cookies on our website to improve functionality and performance, analyze website traffic and enable social media features. By continuing to use our website, you agree to our use of cookies. For more information, please see our Cookie Policy.