Spence v. American Airlines: Expanding the Playing Field for Fiduciary Liability?
A federal court in Texas has ruled that American Airlines breached its duty of loyalty under ERISA by failing to respond to activities undertaken by a plan investment manager (BlackRock) supporting ESG initiatives. The court was unable to find a breach of prudence—rather it relied solely on the obligation of “loyalty.”
View Post
Patterns of How the Financial Industry Tolerates Misconduct
A recent paper, The Market for Financial Adviser Misconduct (Journal of Political Economy, Publication Forthcoming), raises some important – and troubling – issues about how the financial industry treats advisers who engage in serious misconduct. The paper shows a number of different ways that adviser misconduct is concentrated – among repeat offenders, certain financial firms […]