Regulatory Alerts2023-07-26
Exemption for Certain Investment Advisers Operating Through the Internet
The Securities and Exchange Commission proposes amendments to Rule 203A-2(e) under the Investment Advisers Act of 1940 to modernize the Internet Adviser Exemption for technology-driven advisory firms. The updated rules broaden the definition of an interactive website to encompass modern digital platforms and eliminate the de minimis non-internet client exception, ensuring all advisory services are delivered online. Concurrently, the Commission amends Form ADV to align instructions and require specific representations, enabling qualifying internet-based advisers to register federally and preempt state oversight.
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