SEC Proposes Reforms for Internet-Exclusive Investment Advisers
From the Desk of Jim Eccleston at Eccleston Law.
The Securities and Exchange Commission (SEC) introduced proposed amendments to the rule that allows specific investment advisers offering their services online to register with the Commission.
The amendments aim to mandate that an investment adviser utilizing the Internet adviser registration rule must maintain an active, interactive website through which they continuously provide digital investment advisory services to multiple clients. Additionally, the proposed changes seek to remove the de minimis exception from the current rule, requiring internet investment advisers to exclusively offer advice through their operational interactive websites to all their clients. Corresponding adjustments to Form ADV are also part of the proposed amendments.
According to SEC Chair Gary Gensler, the proposed changes will modernize the Internet advisers exemption to better align registration requirements with modern technology and help the Commission efficiently and effectively oversee registered investment advisers. The SEC will publish the proposed release in the Federal Register. The public can submit comments for 60 days after the release's publication date in the Federal Register.
Eccleston Law LLC represents investors and financial advisors nationwide in securities, employment, transition, regulatory, and disciplinary matters.
Related Attorneys: James J. Eccleston
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