Dan Brecher
Counsel
212-286-0747 dbrecher@sh-law.comAuthor: Dan Brecher|June 8, 2015
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.
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:
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.
Counsel
212-286-0747 dbrecher@sh-law.comThe 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.
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:
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.
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