Analysis

SEC Initiative A More Efficient Fix For Adviser Conflicts

Law360 (February 13, 2018, 10:19 PM EST) -- A U.S. Securities and Exchange Commission program offering to waive financial penalties against investment advisers who self-report cases where they sold higher-priced funds to collect bigger fees could streamline efforts to clean up the industry and return money to overcharged clients, legal experts said Tuesday.

The SEC’s Share Class Selection Disclosure Initiative seeks to address a widespread conflict of interest inherent to the mutual fund industry: Investment advisers get paid to recommend some funds to clients, creating a situation in which clients often pay more for...
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