What You Need to Know
- The SEC wants to know under what facts and circumstances these providers are giving investment advice.
The Securities and Exchange Commission is seeking comment on which “information providers,” such as index providers, model portfolio providers and pricing services might come under the commission’s definition of an investment advisor.
“The role of these information providers in today’s markets raises important questions under the securities laws as to if they are providing investment advice rather than merely information,” SEC Chairman Gary Gensler said Wednesday in a statement. “I am pleased to support this request because it will help inform our consideration of when — and under what facts and circumstances — these providers are giving ‘investment advice.’”
The agency is looking for feedback before Aug. 16.
Gensler stated that some information providers “may not fit neatly into the Commission’s existing regulatory structure for investment advisers,” and that the agency seeks comment on how existing rules should apply to them.