ARTICLE
7 September 2016

Federal Register: SEC Adopts Amendments To Registration And Reporting Requirements For Investment Advisers

CW
Cadwalader, Wickersham & Taft LLP

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Cadwalader, established in 1792, serves a diverse client base, including many of the world's leading financial institutions, funds and corporations. With offices in the United States and Europe, Cadwalader offers legal representation in antitrust, banking, corporate finance, corporate governance, executive compensation, financial restructuring, intellectual property, litigation, mergers and acquisitions, private equity, private wealth, real estate, regulation, securitization, structured finance, tax and white collar defense.
The SEC adopted amendments that enhance the reporting and disclosure of information by investment advisers.
United States Corporate/Commercial Law

The SEC adopted amendments that enhance the reporting and disclosure of information by investment advisers. The final amendments were published in the Federal Register and will become effective on October 31, 2016. Investment advisers must comply with the final amendments beginning on October 1, 2017.

The modified final amendments require investment advisers to:

  • provide additional information regarding their separately managed account businesses, including aggregate data related to the use of borrowings and derivatives;
  • provide information about other aspects of their advisory businesses, including branch office operations and the use of social media; and
  • maintain additional records related to the calculation and distribution of performance information, which "will be useful to the [SEC]'s examinations staff in evaluating adviser[s'] performance claim[s] . . . and could reduce the incidence of misleading or fraudulent advertising and communications by advisers."

The SEC also adopted additional requirements for investment advisers that include a simplified umbrella registration procedure that will be made available to the private fund adviser who operates as a "single advisory business" through multiple legal entities.

The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.

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