who may be interested: Investment Advisor
Quick shot: The U.S. Securities and Exchange Commission adopts modernizing amendments to Section 203A-2(e) under the Advisers Act (Internet Adviser Exemption) that would allow advisers to provide investment advice to clients exclusively through an “interactive website” (except at the lowest limit Although the SEC’s minimum threshold for assets under management is not met, registration with the SEC is still required (except for non-Internet clients).
__________________________________________________
The Internet Advisor Exemption was passed in 2002 to eliminate the burden of multiple state registration requirements that could apply to Internet advisors serving investors across the United States. The amendments adopted as proposed narrow the scope of the exemption and require advisers relying on the exemption to maintain an “operational” interactive website through which the adviser provides investment advisory services to multiple clients on an ongoing basis. Under the amendment, advisors must have their websites operational upon registration or develop their websites within 120 days relying on the 120-day exemption provided in Rule 203A-2(c).
The amendment also eliminates at the lowest limit The exception allows advisors relying on the Internet Advisor Exemption to provide advisory services to up to 14 clients outside of their interactive website during a 12-month period, and requires that advisory services be provided only through the operation of an interactive website.
Additionally, the amendment modifies Form ADV to require advisors relying on the exemption to indicate on Form ADV that, among other things, they have an operational interactive website.
The amendment will take effect 90 days after publication in the Federal Register and requires compliance by March 31, 2025.
The amendments can be found here.