Press Release: SEC Staff Provide Information To Assist Newly-Registered Investment Advisers
The SEC launched a proactive educational initiative by sending welcome letters to newly registered investment advisers to explain compliance obligations under the Investment Advisers Act, with no fraud, charges, or penalties involved.
The SEC announced a regulatory outreach program to assist newly registered investment advisers by sending welcome letters containing plain-English summaries of the Investment Advisers Act, contact details for local SEC offices, and information about the CCOutreach Program. This initiative, launched in July 2007, targets approximately 1,000 new advisers annually—constituting 30% of the 10,500 total registered advisers since 2005—and aims to foster early compliance and investor protection. No misconduct, financial penalties, or enforcement actions are associated with this effort; it is purely educational and preventive.
In July 2007, the U.S. Securities and Exchange Commission (SEC) unveiled a proactive educational initiative to support newly registered investment advisers by distributing welcome letters designed to clarify their compliance responsibilities under the Investment Advisers Act. These letters, sent primarily by email and posted on the SEC’s website, included plain-language explanations of key regulatory requirements, contact information for local SEC offices, and details about the CCOutreach Program to assist chief compliance officers. The initiative was spearheaded by the Division of Investment Management and the Office of Compliance Inspections and Examinations, with leaders emphasizing its role in promoting investor protection through early education. Since January 2005, approximately 3,200 advisers had registered with the SEC, and newly registered firms now made up about 30% of the total 10,500 registered advisers. Historically, the SEC received over 1,000 new registration filings annually, and the agency anticipated this number would continue to rise. The welcome letter program was explicitly framed as a preventive, non-enforcement tool to reduce inadvertent violations by helping advisers understand their obligations from the outset. No individuals or firms were accused of fraud, misconduct, or financial wrongdoing in connection with this initiative—it was solely an educational outreach effort.
Extracted insights
- person andrew j. donohue
- person lori richards
- agency Securities and Exchange Commission
- agency the adviser to the local office of the sec
- agency the resources available on the sec's web site
- agency the sec's ccoutreach program
- agency the sec since january of 2005
- person welcome letter
- agency welcome letter to the sec's web site
- Securities And Exchange Commission Staff announced they will send all newly registered advisers a welcome letter
- Securities And Exchange Commission Staff will send welcome letter primarily by email
- Securities And Exchange Commission Staff posted welcome letter to the SEC's Web site
- welcome letter introduces the adviser to the local office of the SEC
- welcome letter provides information about the resources available on the SEC's Web site
- welcome letter provides information about the SEC's CCOutreach Program
- Andrew J. Donohue said the new adviser welcome letter explains the key provisions of the Advisers Act
- Lori Richards said newly registered advisers will appreciate having more information about their compliance obligations
- approximately 3,200 advisers registered with the SEC since January of 2005
- newly-registered firms comprise approximately 30% of the total registered investment adviser population
SEC Staff Provide Information To Assist Newly-Registered Investment Advisers FOR IMMEDIATE RELEASE 2007-140 Washington, D.C., July 24, 2007 - Securities and Exchange Commission staff announced that they will send all newly registered advisers a "welcome letter," along with a plain English summary of the key provisions of the Investment Advisers Act to help them understand their compliance responsibilities. The goal is to help educate newly registered advisers about their compliance obligations that promote investor protection. The SEC staff will send the "welcome letter" primarily by email, and has also posted it to the SEC's Web site at http://www.sec.gov/about/offices/ocie/iainfo.htm. In addition to providing the plain English summary of the Investment Advisers Act, the letter also introduces the adviser to the local office of the SEC, provides information about the resources available on the SEC's Web site, and provides information about the SEC's CCOutreach Program to help chief compliance officers implement effective compliance programs. Finally, it encourages the adviser to communicate with SEC staff with any questions. Andrew J. Donohue, Director of the SEC's Division of Investment Management, said, "The new adviser 'welcome letter' explains the key provisions of the Advisers Act in a straightforward, plain English manner. It will benefit advisers, and ultimately investors, because it provides important and helpful information to newly registered firms, early in their operations." Lori Richards, Director of the SEC's Office of Compliance Inspections and Examinations, said, "Our experience in examining newly registered advisers is that they will appreciate having more information about their compliance obligations under the Advisers Act. Understanding these provisions is the first step in healthy compliance for the protection of investors. Along with our CCOutreach Program, ComplianceAlerts, and other efforts, this is one further step in our efforts to help firms meet their compliance responsibilities." Since January of 2005, approximately 3,200 advisers have registered with the SEC. Newly-registered firms now comprise approximately 30% of the total registered investment adviser population of about 10,500 advisers. The number of new registrants is expected to increase. Historically, each year the SEC has received over 1,000 initial registration filings from investment advisers. # # # http://www.sec.gov/news/press/2007/2007-140.htm Home | Previous Page Modified: 07/24/2007
SEC Staff Provide Information To Assist Newly-Registered Investment Advisers FOR IMMEDIATE RELEASE 2007-140 Washington, D.C., July 24, 2007 - Securities and Exchange Commission staff announced that they will send all newly registered advisers a "welcome letter," along with a plain English summary of the key provisions of the Investment Advisers Act to help them understand their compliance responsibilities. The goal is to help educate newly registered advisers about their compliance obligations that promote investor protection. The SEC staff will send the "welcome letter" primarily by email, and has also posted it to the SEC's Web site at http://www.sec.gov/about/offices/ocie/iainfo.htm. In addition to providing the plain English summary of the Investment Advisers Act, the letter also introduces the adviser to the local office of the SEC, provides information about the resources available on the SEC's Web site, and provides information about the SEC's CCOutreach Program to help chief compliance officers implement effective compliance programs. Finally, it encourages the adviser to communicate with SEC staff with any questions. Andrew J. Donohue, Director of the SEC's Division of Investment Management, said, "The new adviser 'welcome letter' explains the key provisions of the Advisers Act in a straightforward, plain English manner. It will benefit advisers, and ultimately investors, because it provides important and helpful information to newly registered firms, early in their operations." Lori Richards, Director of the SEC's Office of Compliance Inspections and Examinations, said, "Our experience in examining newly registered advisers is that they will appreciate having more information about their compliance obligations under the Advisers Act. Understanding these provisions is the first step in healthy compliance for the protection of investors. Along with our CCOutreach Program, ComplianceAlerts, and other efforts, this is one further step in our efforts to help firms meet their compliance responsibilities." Since January of 2005, approximately 3,200 advisers have registered with the SEC. Newly-registered firms now comprise approximately 30% of the total registered investment adviser population of about 10,500 advisers. The number of new registrants is expected to increase. Historically, each year the SEC has received over 1,000 initial registration filings from investment advisers. # # # http://www.sec.gov/news/press/2007/2007-140.htm Home | Previous Page Modified: 07/24/2007