ASA Encourages SEC to Reconsider Provisions to Investment Advisors Act

ASA joined several trade associations in sending a letter to SEC Chairman Gensler.

WASHINGTON, D.C. – This week, the American Securities Association (ASA) sent a joint letter with several trade associations to the U.S. Securities and Exchange Commission (SEC) regarding the scope and application of the recordkeeping provisions of the Investment Advisors Act of 1940 as it relates to text messaging and other electronic communications.

“The scope of the SEC investigative sweep into text messages and electronic communications exceeds the authority Congress granted to the agency under the Advisers Act,” ASA CEO Chris Iacovella said. “The SEC does not have the power to change its regulations unless it follows the Administrative Procedure Act.”

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