SEC Announces Reforms for Internet Investment Advisers

On March 27, 2024, the U.S. Securities and Exchange Commission announced amendments to the Internet Adviser Exemption, which permits investment advisers that provide advisory services through the internet to register with the SEC under the Investment Advisers Act of 1940 if they do not otherwise have enough assets under management to be eligible for registration.

The final rule seeks to address technological and industry advancements since the original Internet Adviser Exemption was adopted in 2002.  The final rule also amends the interactive website requirement, eliminates the exception for advisers with de minimis non-internet clients, and imposes additional reporting requirements for Internet Investment Advisers on Form ADV.

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