In 1963, the United States Supreme Court, inĀ SEC v. Gains Research Bureau, Inc., held that the Investment Advisers Act of 1940 imposes a fiduciary duty on investment advisers by operation of law. Since then, the SEC has continuously reinforced thatĀ investment advisers, as fiduciaries, have an affirmative duty to their clients of utmost good faith, full and fair disclosure of all material facts, and an obligation to employ reasonable care to avoid misleading their clients.