Podcast Center
Video Center
Webcasts
Resource Center
Events
May 20, 2015 at 09:21 AM
The Securities and Exchange Commission unanimously approved Wednesday proposed amendments to Form ADV requiring advisors to not only provide more information about their use of derivatives in separately managed accounts, but also about their branch office operations and their use of social media.
The agency also proposed measures to enhance data reporting for registered investment companies, which include mutual funds and ETFs.
The SEC unanimously approved issuing the proposals for a 60-day comment period.
SEC Chairwoman Mary Jo White said at the open meeting at SEC headquarters in Washington that beyond the measures approved for comment at the Wednesday meeting, SEC staff is also developing recommendations to enhance the “management and disclosure of liquidity risk by mutual funds and ETFs, and to update the liquidity requirements for the use of derivatives by funds.”
White said that oversight of funds and advisors “is one of the most important functions” of the Commission, adding that more than 28,000 funds and investment advisors file reports with the agency.
She stated that the proposals are part of a series of rulemakings the agency is putting forth to enhance the agency’s monitoring and regulation of the asset management industry, and that the agency also plans to use the additional data to enhance its ability to conduct “more targeted” exams.
SEC Commissioner Daniel Gallagher, who is resigning his post, said that the proposals “are the organic proposals we [the SEC] should be pursuing.” SEC Commissioner Michael Piwowar agreed that the proposals are “a welcome respite from the Dodd-Frank Act rulemakings.”
The proposed changes to Form ADV include requiring disclosure of aggregate information related to assets held and use of borrowings and derivatives in separately managed accounts.
