Evolving Fiduciary Duties in the Era of Financial Reform
The crisis in the financial sector has put pressure on both legislatures and courts to increase protections for investors. In response, Congress recently has enacted sweeping financial reform legislation, which has imposed new duties on certain types of advisers and authorizes the SEC to enact new rules imposing additional duties. And recent decisions indicate that courts may be willing to expand the fiduciary duties owed by hedge fund advisers, finding that they owe such duties not only to the funds themselves but, under some circumstances, to the investors in those funds. Click on the attached pdf to read more.