Comment Letters

IAA Submits Letter to CFTC on Regulation 4.7 Disclosure Proposal for CPOs and CTAs

The IAA urges the CFTC to refrain from adopting unnecessary and costly disclosure for CFTC Regulation 4.7 commodity pool operators (CPOs) and commodity trading advisors (CTAs) whose investors and clients are sophisticated Qualified Eligible Participants (QEPs).

December 11, 2023

Keywords: CFTC, Private Funds

Categories & Topics: CFTC, Compliance, Private Funds

IAA Submits Additional Comments on SEC’s Safeguarding Proposal

The IAA submitted a comment letter urging the SEC to make additional changes to its proposed rule relating to the safeguarding of advisory client assets.

October 30, 2023

Keywords: Custody, Safeguarding, SEC

Categories & Topics: Compliance, Custody

IAA Submits Supplemental Letter on Dealer Proposal

The IAA has submitted a supplemental comment letter urging the SEC to exclude SEC-registered investment advisers and their clients from the proposed definition of dealer.

October 17, 2023

Keywords: Private Funds; Trading

Categories & Topics: Brokerage & Trading, Compliance

IAA Submits Second Supplemental Letter on Outsourcing Proposal

The IAA has submitted a second supplemental comment letter calling for changes to the SEC’s service provider oversight, or outsourcing, proposal.

October 13, 2023

Keywords: Compliance Rule, Due Diligence, oversight, Service Providers

Categories & Topics: Compliance, Compliance Programs

IAA Calls on SEC to Withdraw Rule Proposal on Conflicts of Interest Associated with use of Predictive Data Analytics

The IAA submitted a comment letter to the SEC requesting that the agency withdraw its proposed rules regarding potential conflicts of interest associated with the use of predictive data analytics and other technologies by advisers in investor interactions.

October 10, 2023

Keywords: Artificial Intelligence, Conflicts of Interest, Predictive Data Analytics

Categories & Topics: Compliance, Conflicts, Fiduciary

IAA Letter to SEC on Service Provider Outsourcing

The IAA submitted a comment letter to the SEC reflecting our general views on the recent adviser outsourcing proposal. Our comments were developed with the input of our dedicated member workstream that is focusing on this proposal. We have significant concerns with the proposal and have urged the Commission not to move forward and instead to consider alternative approaches to achieve its goals.

December 23, 2022

Keywords: Due Diligence, Outsourcing, oversight, Service Providers, Vendors

Categories & Topics: Compliance, Compliance Programs

IAA Supplemental Letter to SEC on Cybersecurity Survey Results

Results of the IAA’s 10-question member survey on the costs and burdens associated with the SEC’s cybersecurity proposal, which we believe the SEC severely underestimates. These results can help members benchmark their cybersecurity-related costs.

December 19, 2022

Keywords: Advocacy, Cybersecurity

Categories & Topics: Compliance, Cybersecurity/Privacy

IAA Joins Request to Extend Comment Deadlines

The IAA joined a letter calling on the SEC to provide reasonable time for input on sweeping and complex rule proposals on outsourcing and liquidity and swing pricing that would affect the entire advice and asset management ecosystem.

November 16, 2022

Keywords: Due Diligence, Rulemaking, Service Providers, Vendors

Categories & Topics: Industry Trends, Industry-Level

Supplemental Comments on SEC Proposal to Shorten Securities Settlement Cycle to T+1

The IAA has submitted supplemental comments on the SEC’s proposal to shorten the securities settlement cycle to T+1. Our supplemental letter requests that the SEC push back the T+1 settlement cycle compliance date to September 3, 2024, replace the proposed requirement of a written agreement with a requirement that investment advisers adopt policies and procedures, and that the SEC take further action to reduce disruption in the foreign exchange (FX) markets.

October 19, 2022

Keywords: Recordkeeping, Securities Settlement Cycle, Trading

Categories & Topics: Books & Records, Brokerage & Trading, Compliance

Comments on DOL Proposal to Amend the QPAM Exemption

The IAA responded to a Department of Labor proposal to amend the QPAM Exemption. While we support the DOL’s efforts to protect the interests of Plans and Plan participants, we are concerned that the potential impacts of the proposal would extend beyond these objectives and would have negative consequences that may not be in the best interest of Plans and their participants.

October 11, 2022

Keywords: DOL, ERISA, PTE, QPAM

Categories & Topics: Compliance, ERISA & Pension Plans

Comments on SEC Proxy Voting Advice Proposal

We support the SEC’s proposal regarding proxy voting advice provided by proxy advisory firms and request that the SEC rescind both the 2019 and 2020 guidance for investment advisers on proxy voting.

December 27, 2021

Keywords: Proxy Voting, SEC

Categories & Topics: Business Ops/HR, Proxy Voting

SEC Form 13F Re-Proposal

The IAA commented on the SEC’s re-proposal of amendments to Form 13F that (i) additional identifying information in Form 13F is not needed, (ii) the SEC could provide managers with flexibility to choose an alternative identifier to a CUSIP and should study holistically issues raised by requiring the use of licensed security identifiers, and (iii) the SEC should not make technical amendments to the well-established rounding conventions or how a security’s value is reported.

December 17, 2021

Keywords: 13F, Advocacy, CUSIP

Categories & Topics: 13F, Reporting

Comments on SEC’s Form N-PX/Say-on-Pay Proposal

The IAA recommended the SEC revise the proposed requirement to report shares loaned but not recalled for a say-on-pay proxy vote by a reporting person and instead require a narrative disclosure.

December 14, 2021

Keywords: Proxy Voting

Categories & Topics: Business Ops/HR, Proxy Voting, Reporting, Securities Act

Comments on DOL ESG and Proxy Proposal

We support the DOL’s proposal related to ESG investing and proxy voting and recommend that the DOL remove certain ESG-specific language in the rule text and remove the proposed “collateral benefit” disclosure.

December 13, 2021

Keywords: ERISA, ESG, Proxy Voting

Categories & Topics: Business Ops/HR, Compliance, ERISA & Pension Plans, Proxy Voting

Recommendations of SEC Asset Management Advisory Committee on Small Advisers

The IAA’s letter to the House Financial Services Committee supports bi-partisan legislation that would require the SEC to analyze the impact of regulations on small businesses and consider alternative approaches. This is consistent with the recent AMAC recommendation for the SEC to reconsider a small entity for purposes of its regulatory analysis.

November 23, 2021

Keywords: AMAC, House Financial Services, Industry Snapshot, Small Advisers

Categories & Topics: Congress, Industry Trends, Industry-Level

Response to Consultation Paper on the Development of the CFA Institute ESG Disclosure Standards for Investment Products

We responded to a CFA Institute consultation on ESG Disclosure Standards for Investment Products. We urged CFA Institute to wait until regulators completed their deliberations and then determine whether there is a need for ESG product disclosure standards. Our responses focused on the need for and scope of the standards, our objection to the independent examination requirement, and ESG Integration and Proxy Voting, Engagement, and Stewardship as ESG-Related Features.

October 19, 2020

Keywords: CFA Institute, ESG

Categories & Topics: ESG, Industry-Level

Comments on DOL Proxy Proposal

The IAA strongly opposed and urged the DOL to withdraw its proposal on proxy voting and the selection and monitoring of proxy advisory firms because it represents a significant departure on how plan fiduciaries view their proxy voting responsibilities, and would substantially increase compliance costs without providing measurable benefits to plan participants and beneficiaries.

October 05, 2020

Keywords: DOL, Proxy Advisory Firms, Proxy Voting

Categories & Topics: Compliance, ERISA & Pension Plans, Proxy Voting

Comments on SEC Form 13F Proposal

The IAA recommended a more modest increase to the Form 13F reporting threshold and called for limitations on proposed technical amendments.

September 29, 2020

Keywords: 13F

Categories & Topics: 13F, Reporting

IAA, Joint Trades Letter to the DOL Requesting Extension of Comment Period for DOL Proxy Proposal

The IAA joined other trade associations to submit a letter to the DOL requesting an extension of the comment period for the DOL’s Proxy proposal.

September 25, 2020

Keywords: DOL, Proxy Voting

Categories & Topics: Compliance, ERISA & Pension Plans, Proxy Voting

IAA, Joint Trades Letter Supporting Deferral of Compliance Dates for Initial Margin Requirements

The IAA joined other trade associations to submit a letter to regulators supporting the deferral of compliance dates for the application of initial margin requirements due to the impact of the pandemic and supporting the issuance of a CFTC proposal on margin requirements.

August 26, 2020

Keywords: CFTC, COVID-19

Categories & Topics: CFTC, Compliance

IAA, Joint Trades Letter Urging Congress to Allow Financial Services Professionals to Qualify for Pass-Through Business Tax Deduction

The IAA joined other trade associations to submit a letter to leadership of the House Ways and Means Committee and the Senate Finance Committee urging them to allow financial services professionals to qualify for a 20 percent deduction on “qualified business income” for owners and shareholders of pass-through businesses.

December 18, 2019

Keywords: Taxes

Categories & Topics: Account Operations, Congress, Industry-Level, Tax

Comments on Procedures for Review of Exemptive Applications Under the Investment Company Act

The IAA supported the objective of the proposal to make the applications process more efficient. The IAA also supported comments made by the Investment Company Institute regarding the expedited review process, transparency on the timeframe for staff action, and concerns on publication of comments and responses.

November 27, 2019

Keywords: Investment Company Act

Categories & Topics: Compliance, Registered Funds

Comments on Proposed Safe Harbor for Electronic Disclosure by Employee Pension Benefit Plans Under ERISA

The IAA supported the proposed safe harbor for the use of electronic disclosure, particularly the “notice and access” approach, and encouraged the Department of Labor to apply the safe harbor to documents furnished upon request and allow for consolidated delivery of documents.

November 22, 2019

Keywords: DOL, Electronic Delivery

Categories & Topics: Compliance, ERISA & Pension Plans

Comments on SEC Concept Release on Harmonization of Securities Offering Exemptions

The IAA recommended amending the definition of “accredited investor” and “qualified institutional buyer” or “QIB,” clarifying that certain communications do not violate the “general solicitation” or “general advertising” prohibitions, and expanding the ability of investors to invest in closed-end funds that invest in privately offered alternative investments.

October 18, 2019

Keywords: Accredited Investor, Private Offerings, QIB

Categories & Topics: Compliance, Private Funds

IAA, Joint Letter to CFTC on Registration and Compliance Requirements for Commodity Pool Operators and Commodity Trading Advisors

The IAA joined others to submit comments to the CFTC regarding the potential for adverse and unintended cross-border impacts of its proposal regarding the regulation of commodity pool operators and commodity trading advisors.

September 13, 2019

Keywords: CFTC

Categories & Topics: CFTC, Compliance

Comments on SEC Staff Roundtable on Proxy Process

The IAA discussed investment advisers’ use of proxy advisory firms for a range of services and that increased regulation of these firms would increase costs for advisers and their clients. The IAA also discussed advisers’ understanding of their obligations to vote proxies in the best interest of their clients.

December 31, 2018

Keywords: Proxy Advisory Firms, Proxy Voting

Categories & Topics: Compliance, Proxy Voting

Comments on the CFA Institute’s Exposure Draft of GIPS 2020

The IAA discussed the need for the 2020 GIPS Standards to be as streamlined as possible, and expressed concerns regarding the scope of the proposal, particularly about the proposed treatment of limited distribution pooled funds.

December 31, 2018

Keywords: GIPS

Categories & Topics: GIPS, Reporting

Comments on Custody Rule and Definition of Small Business Pursuant to Regulatory Flexibility Act Review

The IAA urged the SEC to update the definition of “small business” under the Advisers Act and better tailor its regulations for smaller advisers. The Custody Rule was included in the list of rules to be reviewed under the Regulatory Flexibility Act, and the IAA described the rule as overly complex, unduly burdensome, and causing unnecessary confusion.

December 27, 2018

Keywords: Custody, Smaller Advisers

Categories & Topics: Compliance, Custody

IAA, Joint Letter to CFTC to Request Extension of the Swap Execution Facilities and Trade Execution Requirement Proposal

The IAA joined other trade associations to urge the CFTC to extend the deadline for comments on the proposal regarding swap execution facilities and the trade execution requirement because of the complexity and size of the proposal.

December 21, 2018

Keywords: CFTC, Swaps

Categories & Topics: CFTC, Compliance

Comments on CFTC’s Amendments to Registration and Compliance Obligations for Commodity Pool Operators and Commodity Trading Advisors

The IAA recommended that the CFTC eliminate duplicative registration requirements and outdated conditions. The IAA also sought clarification regarding certain exemptions and requested that SEC-registered advisers be excluded from certain proposed provisions.

December 17, 2018

Keywords: CFTC

Categories & Topics: CFTC, Compliance