In a recent LawFlash, a team of Morgan Lewis lawyers reviewed the US Securities and Exchange Commission’s proposal for a new rule and rule amendments that, if adopted as proposed, would require registered investment advisers to meet certain requirements when outsourcing “Covered Services.” The rule includes heightened requirements for due diligence, monitoring, and reporting, including amendments to Form ADV.
Public comment is open 60 days from October 26, 2022 (until December 25, 2022), or 30 days after publication in the Federal Register, whichever is later.
Tech & Sourcing @ Morgan Lewis will continue to monitor the progress of this proposed rule that could significantly impact investment advisors and their service providers.