SEC Proposes Exemption for Certain Internet Investment Advisers

The SEC has issued a proposed rule, Exemption for Certain Investment Advisers Operating Through the Internet. The proposal would amend “the rule under the Investment Advisers Act of 1940 that exempts certain investment advisers that provide advisory services through the internet . . . from the prohibition on Commission registration, as well as related amendments to Form ADV.” The purpose of the proposal is “to modernize the rule’s conditions to account for the evolution in technology and the investment advisory industry since the adoption of the rule.”

Comments on the proposed rule are due 60 days after the date of its publication in the Federal Register.

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, Hester Peirce, and Mark Uyeda — on the SEC’s Web site.