SEC Disclosures Guide: Performance Record Retention



We at Shearman & Sterling were pleased to have the opportunity to present our thoughts on “SEC Public Disclosures - A Guide for Investment Advisers” at the MyComplianceOffice Webinar on October 13. We had an enthusiastic crowd and some lively exchanges. We’d like to summarize the main points of our presentation here in a five-part series.

Yesterday we talked about "Enhanced Identification Disclosure", today we highlight the two amendments made to rules for retention of performance records. "Performance Record Retention".

The SEC has amended the rules for retention of performance records by investment advisers:

1) Investment advisers will be required to retain performance records supporting performance claims made in any communication with any single person, rather than with the ten person minimum currently applicable under Rule 204-2(a) (16).

2) Rule 204-2(a)(7) will hereafter require investment advisers to retain originals of all written   communications received and copies of all written communications sent by an investment adviser relating to the performance or rate of return of any or all managed accounts or securities recommendations.

This is the fourth post in our five-part series titled “SEC Public Disclosures - A Guide for Investment advisers". Click here to view part 5, "Preparing for the Effective Date & Polling Results". Alternatively you can download the full report here