Oversight of Investment Advisers Leads to New Rules Proposed by the SEC

Investment advisers previously omitted in the Securities and Exchange Commission (SEC) horizon have come under the SEC scanner with new rules proposed. They are intended to strengthen this omission and fill key gaps in the regulatory landscape.

 

The Securities and Exchange Commission today voted to propose new rules to strengthen the SEC's oversight of investment advisers and fill key gaps in the regulatory landscape.

 

Provisions of the Dodd-Frank Wall Street Reform and Consumer Protection Act and others will be implemented in the recommendations.

 

The key points are:

Additionally, amendments to rules have been proposed, necessitating investment advisors to disclose more information and details of the private funds managed by them. The pay-to-play rule of the Commission is likely to be revised as well.

 

The SEC also proposed amendments to rules that would require disclosure of greater information by investment advisers and the private funds they operate, as well as amendments that would revise the Commission's pay-to-play rule.

 

"The enhanced information envisioned by these proposed rules would better enable both regulators and the investing public to assess the risk profile of an investment adviser and its private funds," said SEC Chairman Mary L. Schapiro.

 

The Dodd-Frank Wall Street Reform and Consumer Protection Act (“Dodd-Frank Act”) came into effect on 21 July 2010 under a law signed by President Obama. It amends certain provisions of the Advisers Act.

 

On July 21, 2010, President Obama signed into law the Dodd-Frank Wall Street Reform and Consumer Protection Act (“Dodd-Frank Act”) which, among other things, amends certain provisions of the Advisers Act. Most of the amendments to the Advisers Act are included in Title IV of the Dodd-Frank Act. This includes provisions modifying investment advisors oversight responsibility by entrusting responsibility of certain mid-sized advisors to the states, i.e., invested having between $25 and $100 million of assets under management.