The Securities and Exchange Commission (SEC) has given investment advisors the go-ahead to consider diversity, equity and inclusion factors in the manager-selection or recommendation process, noting that these considerations can align with fiduciary duty.
Asset management partner Paulita Pike told FundFire that “the guidance aims to send a ‘clear message’ that the SEC is focused on diversity, equity and inclusion and seeks to let investment advisors know they can be too.”
“To the extent that any boards or asset management firms felt like DEI was not or could not be one of the things that they considered when it came to investment advisors, this opens the door in an explicit way,” she said.
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