In July 2019, the SEC’s Interpretation Regarding Standard of Conduct for Investment Advisers (Interpretation) took effect. The Interpretation confirms that an adviser owes its clients a fiduciary duty under Section 206 of the Investment Advisers Act of 1940 and that the duty is composed of a duty of care and a duty of loyalty. Elaborating upon that standard, the SEC stated that an “adviser must, at all times, serve the best interest of its client and not subordinate its client’s interest to its own. In other words, the investment adviser cannot place its own interests ahead of the interests of its client.” Thus, conflicts of interest are at the core of the Interpretation. This three-part series examines the practical implications of the Interpretation for private fund managers. The first article provides an overview of the Interpretation and explores six key takeaways for fund managers from it. The second and third articles explore how fund managers can adopt a more systematic approach to identify, mitigate and monitor their conflicts of interest in light of the SEC’s detailed discussion in the Interpretation regarding an adviser’s obligation to “make full and fair disclosure” of all conflicts of interest that might incline an investment adviser to render advice that is not disinterested. See “Using Technology and Outsourcing to Enhance Compliance Programs and Manage Conflicts of Interest” (Nov. 11, 2021); and “Proper Use of Advisory Committees by Private Fund Managers May Mitigate Conflicts of Interest” (Dec. 17, 2015).