The Securities and Exchange Commission on Thursday adopted amendments to rules governing how investment advisers report and disclose information about separately managed accounts to investors and to the SEC.
Chairwoman Mary Jo White in a statement called the changes “an important step in a series of rule-makings to enhance the SEC's monitoring and regulation of the asset management industry,” which will allow a better understanding of the risk profile of advisers and the industry as a whole.
The changes to the SEC's Form ADV are designed to provide more information about advisers' separately managed accounts and allow entities that operate as a single advisory business to register with a single form. The commission also made other technical changes and removed transition provisions no longer needed. The changes become effective 60 days after publication in the Federal Register.
SEC officials proposed the amendments to Part 1A of Form ADV on May 20, 2015. The changes adopted “are designed to improve the depth and quality of information that we collect on investment advisers, facilitate our risk-monitoring initiatives and assist our staff in its risk-based examination program,” according to the final rule. “These amendments also are intended to provide advisory clients and the public additional information regarding registered investment advisers,” the SEC document said.
The SEC received 50 comment letters from investment advisers, professional organizations, law firms and consultants, with commenters “generally” supporting the goals. “Several commenters supported collection of information on separately managed account clients, but many raised concerns about the public availability of the information and reporting on derivatives and borrowings,” the final rule said.
The rule is available on the SEC's website.
