A Fiduciary Approach to Conflicts of Interest and Risk Governance
Blaine Aikin, CEO for fi360, and Byron Bowman, General Counsel for fi360.
December 11, 2012
In a recent speech, SEC Director of the Office of Compliance Inspections and Examinations Carlo V. di Florio stated that "conflicts of interest…are a leading indicator of significant regulatory issues for individual firms, and sometimes even systemic risk for the entire financial system."
Conflicts of interest are the single greatest obstacle to fulfilling fiduciary duty. As long as temptations exist, there will be instances of advisors making decisions for their own benefit at the expense of those they are charged to serve. Fiduciaries have a responsibility to recognize those conflicts and either eliminate them or manage them to the benefit of the client.
Join us for a one hour webinar as we discuss the focus the SEC is currently placing on conflicts of interest and what fiduciaries can do to mitigate this risk. Using Mr. di Florio's speech as our guide, we will take a look at the six types of conflict that are currently high on the SEC's examination priority list, and the three major components of an effective risk governance framework for advisory firms.