Posts tagged ‘Jay Facciolo’

April 29, 2016

Facciolo Presents at PLI on Retail Fund Regulation

Professor Jay Facciolo was the lead speaker in the April 28 PLI program entitled “Basics of jayMutual Funds and Other Registered Investment Companies 2016.” The title of his presentation was “The Evolution of an Industry: Approaching 75 Years of Retail Fund Regulation,” which provided an overview of the topics that were covered in more detail during the rest of the program. There were 149 attendees registered for in-person attendance and 236 registered for web attendance, of which 80% had some connection to the asset management business.

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April 22, 2016

Facciolo Gives PLI Presentation on Financial Services Conflicts of Interest

This week, Professor Jay Facciolo gave the opening presentation at a PLI program entitled download“Financial Services Conflicts of Interest & Fiduciary Duties 2016: Navigating the Emerging Regulatory Maze.” He started the program off by giving a presentation on fiduciary duties and financial advice, focusing on the common law roots of fiduciary duty and how they have been translated into the statutory and regulatory regimes that govern investment advisers and stock brokers.

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March 18, 2015

Facciolo Authors Article in the New York Law Journal

Jay Facciolo

Jay Facciolo

Professor Jay Facciolo and Leland Solon, one of his former students, have just published an article in the New York Law Journal entitled “Sub-Adviser Fee Litigation: Will Section 36(b) Acquire Teeth?”  It deals with a wave of class action litigation under the Investment Company Act of 1940 that is gaining real traction in challenging allegedly excessive fees paid by mutual funds to investment advisers to the funds.  Successful private actions under the Investment Company Act historically have been few and far between.  This article is a followup to an article that was previously published with the New York Law Journal in October 2013.

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February 19, 2015

Facciolo Published in University of Pennsylvania Journal of Business Law

Jay Facciolo

Jay Facciolo

Professor Jay Facciolo has just published “Do I Have a Bridge for You: Fiduciary Duties and Financial Advice,” his latest article on securities regulation, in 17 University of Pennsylvania Journal of Business Law 101 (2014).  The issue of whether broker-dealers should be held to a fiduciary standard as are investment advisers has generated a great deal of debate since 2010, when Dodd-Frank mandated that the SEC study the issue.  Currently, the Department of Labor is considering proposing a new rule that would apply a theoretically strict fiduciary standard to financial professionals in the ERISA context.  Professor Facciolo’s article argues that a fiduciary standard is no substitute for substantively regulating conflicts of interest in the provision of financial advice.  Fiduciary standards fail to provide strong legal protections because of the contractual nature of such standards.  In addition, standards are only as strong as the enforcement mechanisms available and, in financial advice, regulatory oversight has been ineffective and there are no robust private rights of action.  Finally, disclosure, the standard fall back in securities regulation, has not worked well in creating limitations on conflicts that protect investors.  In fact, some recent research has even suggested that disclosure of conflicts of interest may make investors trust their conflicted investment advisers more.  After all, only a trust worthy individual would be willing to disclose something potentially negative about herself.

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