SEC Issues Proposal on Services Outsourced by Investment Advisers

The SEC has issued a proposed rule that would “prohibit registered investment advisers from outsourcing certain services and functions without conducting due diligence and monitoring of the service providers.”

Comments on the proposal are due 60 days after the date of its publication on the SEC’s Web site or 30 days after the date of its publication in the Federal Register, whichever period is longer.

For more information, see the press release and fact sheet, as well as statements by SEC Chair Gary Gensler and Commissioners Caroline Crenshaw, Jaime Lizárraga, Mark Uyeda, and Hester Peirce, on the SEC’s Web site.