The SEC has adopted amendments to several Investment Advisers Act rules, as well as the investment adviser registration and reporting form, to enhance the disclosure of information by advisers.
Among other things, advisers will need to provide additional information regarding their separately managed account business and maintain additional records related to the calculation and distribution of performance information.
The SEC believes that these records will be useful for evaluating adviser performance claims and could reduce the incidence of misleading or fraudulent advertising and communications by advisers.
“These amendments are an important step in a series of rulemakings to enhance the SEC’s monitoring and regulation of the asset management industry,” said SEC chair Mary Jo White. “Requiring investment advisers to report this additional information 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 come into effect 60 days after being published in the Federal Register.
