By Mark Schoeff Jr., Dec 19, 2018
Originally published on Investment News
When Securities and Exchange Commission chairman Jay Clayton asserted at a congressional hearing last week that investment advisers can “contract around” their obligation to act in a client’s best interests, it caused some head scratching in the adviser community.
In response to being pressed by Sen. Elizabeth Warren, D-Mass., about the SEC’s investment advice reform proposal, Mr. Clayton said: “Advisers are allowed to contract around this standard; it’s not well known. This is something we want people to understand.”