An examination by the Securities and Exchange Commission found that pension fund consultants and other advisors were lax in vetting alternative investments.
The SEC's Office of Compliance Inspections and Examinations issued a Risk Alert, reminding advisors it is part of their fiduciary duty to ensure any investment meets a client's investment objectives and is consistent with the written objectives of a fund.
"Money continues to flow into alternative investments. We thought it was important to assess advisers' due diligence processes and to promote compliance with existing legal requirements, including the duty to ensure that such investments or recommendations are consistent with client objectives," said OCIE Director Drew Bowden.
Complete your profile to continue reading and get FREE access to BenefitsPRO, part of your ALM digital membership.
Your access to unlimited BenefitsPRO content isn’t changing.
Once you are an ALM digital member, you’ll receive:
- Critical BenefitsPRO information including cutting edge post-reform success strategies, access to educational webcasts and videos, resources from industry leaders, and informative Newsletters.
- Exclusive discounts on ALM, BenefitsPRO magazine and BenefitsPRO.com events
- Access to other award-winning ALM websites including ThinkAdvisor.com and Law.com
Already have an account? Sign In
© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.
