The US Securities and Exchange Commission (SEC) has adopted amendments to several Investment Advisers Act rules and the investment adviser registration and reporting form to enhance the reporting and disclosure of information by investment advisers.
Under the new rules, investment advisers will have to share additional information regarding their separately managed account business, including aggregate data related to the use of borrowings and derivatives, the US watchdog said.
Starting 1 October 2017, they will also have to share information about other aspects of their advisory business, including branch office operations and the use of social media.
Amendments will also require advisers to maintain additional records related to the calculation and distribution of performance information.
SEC Chair Mary Jo White said: “These amendments are an important step in a series of rulemakings to enhance the SEC’s monitoring and regulation of the asset management industry. Requiring investment advisers to report this additional information will provide investors and the Commission with a better understanding of the risk profile of each adviser and the industry as a whole.”