06.21.22
SEC Could Extend Advisor Rules to Index Providers and Other Third-Party Investment Services
by: Kenneth Corbin
The U.S. Securities and Exchange Commission (SEC) is contemplating an expansion of the scope of its advisor regulations to include various market participants who do not directly advise retail investors, but whose decisions may materially affect the structure of a client’s portfolio. The SEC has issued a request for comments on the role of index providers, model portfolio providers and pricing services and whether they should be subject to any part of the regulatory framework of the 1940 Investment Advisers Act. “In recent decades, the use of information providers has grown, changing the asset management industry,” said SEC Chair Gary Gensler. “The role of these information providers today raises important questions under the securities laws as to when they are providing investment advice rather than merely information.”
Read the full article on Barron's