WASHINGTON BUREAU — The U.S. Securities and Exchange Commission (SEC) has proposed a regulation that would increase the size of investment advisors to be regulated by the agency to $100 million, from $25 million.
The proposed investment advisor regulations would implement investor protection provisions of the new Dodd Frank Wall Street Reform and Consumer Protection Act.
Comments will be due 45 days after the rule appears in the Federal Register.
In addition to change the size of advisors that fall under the jurisdiction of the SEC, the proposed regulations would require advisors to hedge funds and other private funds to register with the SEC; define “venture capital fund”; and change the rules governing some investment advisor registration exemptions.
The SEC also proposed amendments to rules that would require disclosure of greater information by investment advisors and the private funds they manage, as well as amendments that would revise the SEC’s pay-to-play rule.
SEC-regulated advisors would have to give the SEC more information about the types of investment products about which they give advice, “such as various types of swaps and variable life insurance,” officials say.
An advisor also would have to tell the SEC more about the types of clients it advises, such as whether it advises insurers, pension fund funds or
retirement plans.