E-Mail Guidance This Month? A Look at What’s Next From the Division of Investment Management
The mutual fund redemption fee rule has been adopted. The point of sale and fund confirm disclosures have just been reproposed, and the fee-based brokerage rule is coming next month.
Wondering whatís next? At last weekís ICAA/IA Week conference, attorney-fellow Nancy Morris provided a peek into the Division of Investment Managementís pipeline:
E-mail guidance. Look for the Divisionís Office of Chief Counsel to put out a letter providing guidance on e-mail retention ó soon. Morris noted that the staff had hoped to get the letter out last year. "My guess is that theyíll probably try to get something out maybe this quarter," she said.
Form ADV Part 2. "Itís coming out," Morris promised. "We keep thinking itís the next thing thatís going to happen and then something else comes up and pushes the office in another direction," she said. But, she added, "thereís no question: we definitely want to get out there." She confirmed that there would be a reasonable transition period as "it will be quite a big change." She also noted that the IARD buildout to accept Part 2 is currently being tested.
Advisersí participation in class actions. Following the blitz of mutual fund class action lawsuits in January, and an OCIE mini-sweep on the topic a few weeks later, some in the industry have speculated that an SEC rule on this topic is not far behind. However, Morris indicated that a class action rulemaking is not in the cards. "From my own point of view," she added, "itís obviously something that advisers should be looking at, along the lines perhaps of the proxy guidelines. There should be some review process in place by which advisers are making decisions about whether or not to participate in class actions . . . as opposed to doing nothing at all, for example."
Books and records. Morris indicated that a staff attorney in the SECís Office of Investment Adviser Regulation has been diligently working on a revision of the books and records rule. However, she warned, "you might not want it to come out. You might be sorry that youíve asked for this."
Anti-money laundering. Tittsworth took this one, since the rulemaking is not solely under the SECís purview. "We donít know when itís going to be approved, but it will be," said Tittsworth. "My guess is the second half of this year."