SEC Solicits Comments about Extending the Collection of Certain Information from Investment Advisers

The SEC issued a notice soliciting comments about the extension of information collected from investment advisers under Advisers Act Rule 206(3)-2 ("Agency Cross Transactions for Advisory Clients"). Rule 206(3)-2 applies to all SEC-registered investment advisers, and permits them to comply with Section 206(3) of the Advisers Act by obtaining a client's blanket consent to enter into agency cross-transactions.

In relying on the rule, investment advisers must provide certain disclosures to their clients. SEC-registered advisers must maintain and preserve certain information that is required under Rule 206(3)-2 for five years. Advisory clients may use the disclosures to monitor agency cross-transactions that affect their advisory accounts, and the SEC will use the information in connection with its investment adviser inspection program to ensure that advisers are in compliance with the rule. According to the SEC, without the information collected under the rule, advisory clients would not have the information necessary for monitoring their advisers' handling of their accounts, and the SEC's inspection program would become less efficient and effective.

Comments must be submitted to the Office of Management and Budget within 30 days of the publication of the notice.

See: SEC Notice (80 FR 16719).