Dechert Files a Comment Letter in Connection with the FTC’s Recent Hearing on “Common Ownership”

On January 15, 2019, Dechert LLP filed a comment letter in connection with the FTC’s recent hearing on “common ownership” - the principle suggested by some that the acquisition of non-controlling interests in competing companies by asset managers, for the benefit of their clients, may cause anticompetitive effects.  The comment letter points out that proponents of this common ownership theory are unable to explain how common ownership causes the anticompetitive effects they allege.  It also points out that the proponents of the theory misunderstand the nature of the asset management industry, and have advocated policy proposals that would fundamentally harm investors and the economy.