SEC Proposes New Swap Rules

Public fund swaps advisers would be required to assume fiduciary duty.

The U.S. Securities and Exchange Commission will seek comment on a rule that would require swap dealers advising pension funds, endowments and municipalities to place the interests of such investors above their own.

SEC commissioners voted 5-0 today to propose a rule that would impose the fiduciary duty as part of business-conduct practices for swap dealers advising so-called special entities. Dealers would also have to “reasonably believe” the investors have an independent representative capable of evaluating risks, according to an SEC fact sheet released in Washington.


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