SEC Sets Comment Deadline on Proposed Changes to Registration Exemption for Internet Investment Advisers

The SEC set a comment deadline of October 2, 2023 for proposed amendments to exemptions from the prohibition on Commission registration (i.e., Advisers Act Rule 203A-2(e)) for certain investment advisers that provide advisory services through the internet. The proposal was published in the Federal Register.

As previously covered, the proposed amendments would require internet investment advisers that are allowed to register with the Commission to have an "operational" interactive website at all times. The proposed amendments would remove the de minimis exception which allows internet investment advisers to have less than 15 non-internet clients within a 12-month period. The exemption would only be available to advisers that provide advice exclusively to clients using an operational interactive website. The proposal would also make corresponding changes to Form ADV.