SEC Issues Staff FAQ on an Investment Adviser’s Consideration of Factors Related to Diversity, Equity, and Inclusion

The SEC staff has issued an FAQ on whether, in accordance with its fiduciary duty, an investment adviser is permitted to “consider factors relating to diversity, equity, and inclusion” when recommending or selecting other investment advisers for its clients. The purpose of the staff FAQ is to address findings related to the “lack of gender and racial diversity in the asset management industry.”

For more information about the staff FAQ, see the statement by SEC Commissioners Caroline Crenshaw and Jaime Lizárraga, as well as the speech by Mr. Lizárraga, on the SEC’s Web site.