03.24.21
SEC Urged to Consider New Diversity Disclosures
by: Ross Kerber
Gilbert Garcia, chair of a subcommittee studying diversity issues for the SEC’s asset management advisory committee, said that his subcommittee will likely recommend new disclosures about diversity from registered investment advisors and other steps to improve minority representation in finance. During a webcast public hearing, Garcia said the subcommittee will likely suggest the SEC require investment advisors to report additional details on their Form ADVs. The subcommittee also may suggest the SEC discourage the use of manager-selection parameters that exclude minority-owned firms, which tend to manage fewer assets and have shorter track records. “Many of the same participants who foster a closed financial system often do so under the shield” of fiduciary obligations, Garcia said.
Read the full article on Reuter.