WASHINGTON DC, March 27, 2024 —
The Securities and Exchange Commission today adopted amendments to its regulations that will allow certain Internet investment advisors to register with the Commission (the “Internet Advisor Exemption”). The amendments would require investment advisers relying on the Internet adviser exemption to maintain an operational, interactive website through which they can provide digital investment advisory services on an ongoing basis to multiple clients. The proposed amendments would also improve the current Even the smallest exceptions to the rule are removed.
“These amendments modernize the 22-year-old rules to strengthen investor protection in the digital age,” said SEC Chairman Gary Gensler. “These changes better reflect what it truly means to offer internet-only-based services in 2024. This will better align registration requirements with modern technology and It allows for efficient and effective oversight of registered investment advisers by the Commission.”
This amendment will become effective 90 days after publication in the Federal Register. Includes a requirement that advisors relying on the Internet Advisor Exemption amend their Form ADV by March 31, 2025 to include a representation that the advisor is eligible to register with the Commission under the Internet Advisor Exemption. , must follow the rules. The advisor will have filed an annual renewal amendment on Form ADV by this date, i.e. no later than 90 days after the end of the financial year on December 31, 2024. Advisors who are no longer eligible to rely on the revised exemption and who have no basis for registration with the Commission may register in one or more states and submit Form ADV-W to the Commission by June 29. registration must be canceled. 2025.
