Investment Professionals

CFA Supports SEC Proposal to Enhance Investment Advisers’ Due Diligence and Oversight Over Third-Party Service Providers

In a letter to the Securities and Exchange Commission (SEC), CFA offered support for rulemaking to establish a set of minimum and consistent due diligence and monitoring obligations for investment advisers that outsource certain functions to third-party service providers. These obligations would help to ensure that advisers maintain sufficient oversight over third-parties so as to fulfill advisers’ fiduciary duty, comply with the federal securities laws, and protect clients from potential harm.