"Conflicts, Conflicts Everywhere."


Last week in Washington, DC at the IA Watch 17th Annual IA Compliance Conference: The Full 360 View, Julie M. Riewe delivered the keynote address. Riewe discussed the work of the Asset Management Unit within the Division of Enforcement and highlighted the importance and concern of conflicts of interest.

"Now a few words about one of the Asset Management Unit’s overarching concerns across all of the investment vehicles: conflicts of interest. In reality, conflicts of interest is the risk area into which nearly all of the more granular priorities I just mentioned fall. In nearly every ongoing matter in the Asset Management Unit, we are examining, at least in part, whether the adviser in question has discharged its fiduciary obligation to identify its conflicts of interest and either (1) eliminate them, or (2) mitigate them and disclose their existence to boards or investors. Over and over again we see advisers failing properly to identify and then address their conflicts."

More here: http://www.sec.gov/news/speech/conflicts-everywhere-full-360-view.html#.VPXkbfnF_05