SEC Announces IA Recordkeeping Rule Amendments

Put your records where your mouth is—that’s the message the SEC is sending to investment advisers. Continue reading

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Put your records where your mouth is—that’s the message the SEC is sending to investment advisers.

The regulatory agency has amended Advisers Act rules to require investment advisers to keep records of all documentation that shows “performance calculations or rates of return.” This includes any communications that a firm receives as well as copies of any communications that it sends.

The change will make it easier for the SEC to identify misleading claims made by investment advisory firms.

The SEC has also made changes to Form ADV, including:

  • Revisions to require additional info about such things as the firm’s separately managed accounts business
  • A revision that requires IAs to provide a list of web address for all their social media pages
  • Amendments that allow private fund adviser entities that operate a single advisory business to complete registration by filing just one Form ADV

SEC Chair Mary Jo White says that these changes “will provide investors and the Commission with a better understanding of the risk profile of each adviser and the industry as a whole.”

The amendments will be published in the Federal Register, and they will become effective 60 days after publication. Advisers are required to begin complying with the amendments no later than October 1, 2017.

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