Today, the Commission is considering a proposal regarding when investment advisers providing advisory services over the internet can register with the Securities and Exchange Commission. In 1996, Congress divided the responsibility for regulating investment advisers so that larger investment advisers with national presence would be regulated by the SEC while smaller advisers with sufficient local presence would be regulated by the states. Second, the proposal would require advisers seeking to rely on the Internet Advisers Exemption to provide advice to clients exclusively through this operational, interactive website. Currently, the rule allows advisers to qualify as internet advisers while, for instance, also serving a small number of investors in person, over the phone, or by other means. This would better align registration requirements with modern technology and help the Commission in the efficient and effective oversight of registered investment advisers.

Source: Wall Street Journal July 26, 2023 23:01 UTC