SEC Adopts Reforms Relating to Investment Advisers Operating Exclusively Through the Internet

The Securities and Exchange Commission (SEC) has approved amendments to the rule governing the registration of internet investment advisers. Under the revised rule, internet advisers must maintain an operational interactive website through which they offer digital advisory services to multiple clients continuously. The amendments also eliminate the current de minimis exception, requiring internet advisers to exclusively provide advice through their interactive website.

SEC Chair Gary Gensler stated that these changes aim to modernize regulations for the digital era, enhancing investor protection and aligning registration requirements with contemporary technology. The amendments will take effect 90 days after publication in the Federal Register, with compliance obligations for advisers by March 31, 2025. Advisers no longer eligible for the exemption must register with state authorities and withdraw SEC registration by June 29, 2025, if applicable.