KNOWLEDGE CENTER

Knowledge Center Archive

Apr
7
2010

Jones v. Harris Implications

By Phil Masterson, Chris Menconi, Counsel, & Dick Grant, Partner, both of Morgan, Lewis & Bockius

On March 30th, the U.S. Supreme Court, in Jones v. Harris Associates L.P., unanimously affirmed the standard first articulated in 1982 in Gartenberg v. Merrill Lynch as the standard mutual fund boards should apply when considering the fees that a mutual fund pays to its investment adviser. Under the Gartenberg standard, which boards have used for many years in assessing the fees mutual funds pay to investment advisers, an investment adviser will not be liable for breach of fiduciary duty unless it charges a fee that is "so disproportionately large that it bears no reasonable relationship to the services rendered and could not have been the product of arm’s-length bargaining." 

In light of this landmark ruling, the SEI Knowledge Partnership recently hosted a webinar to discuss the Jones v. Harris case and its impact on the mutual fund industry. 

Download the transcript (PDF) 

 

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Length: 00:30:00