On March 27, 2024, the U.S. Securities and Exchange Commission (SEC) adopted proposed amendments to Rule 203A-2(e) under the Investment Advisers Act of 1940, known as the “Internet Advisor Exemption” (the “Amendments”). did. The Internet Advisor Exemption allows certain advisors that provide investment advice through interactive websites (Internet Advisors) to register with the SEC even if they do not have sufficient assets under management to qualify for federal registration .
With this fix, minimal This exception allowed Internet advisors to provide investment advice to fewer than 15 non-Internet customers during the previous 12 months while taking advantage of the exemption. All client interactions, except for matters unrelated to the provision of investment advice (such as resolving technical issues, assisting clients in navigating his website, gathering feedback, etc.) Must be done exclusively through an interactive website.
The amendments require Internet advisors to provide investment advice to all customers only through “operational” interactive websites. An “operational” interactive website is defined as a website, mobile application, or similar digital platform on which an investment advisor provides “digital investment advisory services” to multiple clients on an ongoing basis (during a temporary suspension). except for). Digital Investment Advisory Service means investment advice generated by a software-based model, algorithm or application on an operational interactive website based on personal information provided by each customer.
The SEC is also amending Form ADV to require investment advisers that rely on the Internet Advisor Exemption as a basis for registration to represent on Schedule D of Form ADV that they have an operational interactive website .
The compliance date for the revised rule is March 31, 2025. Advisers who are no longer eligible to rely on the amended Internet Advisor Exemption and who do not have a basis for registration with the SEC must withdraw their registration with the SEC by June 29. In 2025 he will register in one or more states.
