"These indexes have grown not only in size but also in available types, ranging from broad-based indexes for general use to specialized, narrowly focused ones designed for particular users," SEC Chairman Gary Gensler said in statement. "Having evolved in size and scope, these indexes are increasingly influential. Thus, an index provider's decision to include a particular security in an index often influences users of the index to purchase or sell securities. This raises questions about whether the index provider is providing investment advice. Model portfolio providers and pricing services have similarly grown and evolved. Each of these providers' activities raise questions regarding our oversight of investment advisers and how we best protect the public."
The request issued Wednesday includes 40 specific questions for the public to consider, including "to what extent do information providers view themselves as having fiduciary obligations to any investors that rely on the information they provide?" And "what are the economic benefits and costs associated with investment adviser status for each type of information provider identified above?"
Investment adviser status has regulatory implications, including questions related to registration under the Advisers Act and questions under the Investment Company Act of 1940, the SEC noted.
"The growing prominence of information providers in the industry adds import to our consideration of whether and how the framework for registering and regulating investment advisers should apply in the context of information providers," SEC Commissioner Caroline A. Crenshaw said in a separate statement. "Today we are only asking questions. But they are important questions and I urge the public to comment."
The request will be published on SEC's website and in the Federal Register. The public comment period will remain open for 60 days following publication on the SEC's website or 30 days following publication in the Federal Register, whichever period is longer.
