On March 27, 2024, the Securities and Exchange Commission (“SEC”) announced amendments to the rule that allows internet-only investment advisers to register with the SEC (the “Rule”). The amended Rule eliminates the current Rule’s de minimis exception approach and requires internet-based investment advisers relying on the Rule to:
- provide investment advisory services exclusively to internet-based clients (i.e., internet-based investment advisers relying on the amended Rule cannot have clients outside of its internet-based services);
- maintain – at all times – an operational interactive website through which the adviser provides its investment advisory services to clients; and
- make disclosures in its Form ADV that the internet-based investment adviser maintains an operational interactive website and is eligible to file under the Rule.
Investment advisers…
