Scarinci Hollenbeck, LLC, LLCScarinci Hollenbeck, LLC, LLC

Firm Insights

SEC Proposes New Rules for Investment Advisers

Author: Dan Brecher

Date: June 8, 2015

Key Contacts

Back

Just as investment advisers are adjusting to their new Dodd-Frank compliance obligations, the Securities and Exchange Commission (SEC) has proposed new reporting and disclosure requirements.

The rule proposal, which was unveiled on May 20, 2015, includes several amendments to Form ADV as well as new reporting requirements for statements of the investment advisers performance.

According to the SEC’s press statement, the new rules would “enhance the quality of information available to investors and would allow the Commission to more effectively collect and use data provided by investment companies and investment advisers.” The agency also proposed new data reporting for mutual funds, exchange-traded funds (ETFs), and other registered investment companies.

Proposed Changes to Form ADV

The SEC’s rule proposal includes several changes to Form ADV, which must be filed annually with the agency by registered investment advisers. Below is a brief summary of the proposed amendments:

  • Separately managed accounts: The new requirements would require aggregate information related to assets held and use of borrowings and derivatives in separately managed accounts. The extent of the information required would depend on the adviser’s total regulatory assets under management (RAUM) attributable to SMAs.
  • Umbrella registration: The changes to Form ADV would formalize the SEC’s previous guidance regarding umbrella registration under which related private fund advisers operating as a single advisory business may register with the SEC using one Form ADV. The criteria established in the proposed rules are essentially the same as those articulated in a 2012 ABA No Action Letter.
  • Additional advisory business information: The proposal would require registered advisers to submit additional information in a number of areas, including social media use, total number of office locations, employment of chief compliance officer, and balance sheet assets.

Proposed Changes to Advisers Act Recordkeeping Obligations

Rule 204-2(a)(16) currently requires registered advisers to maintain documentation for communications regarding performance that are distributed or circulated to ten or more persons. The proposed amendment makes the requirement applicable to all performance-related communications, even those provided to one single person.

The proposed amendments also would also expand the record-keeping obligations of registered advisers. Under the rule proposal, advisers must maintain originals of all written communications received and copies of written communications sent “related to performance or rate of return of accounts and securities recommendations.”

Comments on the proposed amendments must be submitted to the SEC no later than 60 days after their publication in the Federal Register.

No Aspect of the advertisement has been approved by the Supreme Court. Results may vary depending on your particular facts and legal circumstances.

Scarinci Hollenbeck, LLC, LLC

Related Posts

See all
How to Conduct a Fair and Legal Employee Termination in 2025 post image

How to Conduct a Fair and Legal Employee Termination in 2025

Ongoing economic uncertainty is forcing many companies to make tough decisions, which includes lowering staff levels. The legal landscape on both the state and federal level also continues to evolve, especially with significant changes to the priorities of the Equal Employment Opportunity Commission (“EEOC”) under the Trump Administration. Terminating an employee is one of the […]

Author: Angela A. Turiano

Link to post with title - "How to Conduct a Fair and Legal Employee Termination in 2025"
Admin Dissolution for Annual Report: What You Need to Know post image

Admin Dissolution for Annual Report: What You Need to Know

While filing annual reports may seem like a nuisance, failing to do so can have significant ramifications. These include fines, reputational harm, and interruption of your business operations. In basic terms, “admin dissolution for annual report” means that a company is dissolved by the government. This happens because it failed to submit its annual report […]

Author: Dan Brecher

Link to post with title - "Admin Dissolution for Annual Report: What You Need to Know"
What Is Antitrust Litigation Law? post image

What Is Antitrust Litigation Law?

Antitrust laws are designed to ensure that businesses compete fairly. There are three federal antitrust laws that businesses must navigate. These include the Sherman Act, the Federal Trade Commission Act, and the Clayton Act. States also have their own antitrust regimes. These may vary from federal regulations. Understanding antitrust litigation helps businesses navigate these complex […]

Author: Robert E. Levy

Link to post with title - "What Is Antitrust Litigation Law?"
Dissolving Your Business: Essential Legal Steps to Protect Your Interests post image

Dissolving Your Business: Essential Legal Steps to Protect Your Interests

If you’re considering closing your business, it’s crucial to understand that simply shutting your doors does not end your legal obligations. Unless you formally dissolve your business, it continues to exist in the eyes of the law—leaving you exposed to ongoing liabilities such as taxes, compliance violations, and potential lawsuits. Dissolving a business can seem […]

Author: Christopher D. Warren

Link to post with title - "Dissolving Your Business: Essential Legal Steps to Protect Your Interests"
The Role of Corporate Restructuring in Mergers & Acquisitions post image

The Role of Corporate Restructuring in Mergers & Acquisitions

Contrary to what many people think, corporate restructuring isn’t all doom and gloom. Revamping a company’s organizational structure, corporate hierarchy, or operations procedures can help keep your business competitive. This is particularly true during challenging times. Corporate restructuring plays a critical role in modern business strategy. It helps companies adapt quickly to market changes. Following […]

Author: Dan Brecher

Link to post with title - "The Role of Corporate Restructuring in Mergers & Acquisitions"
Crypto Enforcement: A Former Prosecutor’s Warning to Criminals and the Public post image

Crypto Enforcement: A Former Prosecutor’s Warning to Criminals and the Public

Cryptocurrency intimidates most people. The reason is straightforward. People fear what they do not understand. When confusion sets in, the common reaction is either to ignore the subject entirely or to mistrust it. For years, that is exactly how most of the public and even many in law enforcement treated cryptocurrency. However, such apprehension changed […]

Author: Bryce S. Robins

Link to post with title - "Crypto Enforcement: A Former Prosecutor’s Warning to Criminals and the Public"

No Aspect of the advertisement has been approved by the Supreme Court. Results may vary depending on your particular facts and legal circumstances.

Sign up to get the latest from our attorneys!

Explore What Matters Most to You.

Consider subscribing to our Firm Insights mailing list by clicking the button below so you can keep up to date with the firm`s latest articles covering various legal topics.

Stay informed and inspired with the latest updates, insights, and events from Scarinci Hollenbeck. Our resource library provides valuable content across a range of categories to keep you connected and ahead of the curve.

Let`s get in touch!

* The use of the Internet or this form for communication with the firm or any individual member of the firm does not establish an attorney-client relationship. Confidential or time-sensitive information should not be sent through this form.

Sign up to get the latest from the Scarinci Hollenbeck, LLC attorneys!