SEC Issues FAQ on Fiduciary DEI Duties

October 17, 2022 by Melanie Waddell

The Securities and Exchange Commission released guidance Thursday clarifying an advisor’s fiduciary duty when considering factors relating to diversity, equity and inclusion in selecting or recommending other advisors.

The question addressed in the FAQ: “Under its fiduciary duty, may an investment adviser that recommends other investment advisers to or selects other advisers for its clients consider factors relating to diversity, equity, and inclusion, provided that the use of such factors is consistent with a client’s objectives, the scope of the relationship, and the adviser’s disclosures?”

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Originally Posted at ThinkAdvisor on October 13, 2022 by Melanie Waddell.