September 22, 2017
Amendments to the Books and Records Rule, Effective October 1st
Effective October 1st, advisers will be required to comply with the revised Books and Records Rule. Under the new rule, advisers must maintain additional records supporting the calculation and distribution of performance information. The amendments were made to rule 204-2(a)(7) and rule 204-2(a)(16) and will become effective for all marketing materials distributed on and after October 1, 2017. The amendments will implement the following changes:
WHAT DOES THIS MEAN FOR ME?
The SEC’s amendments will support the staff in evaluating adviser performance claims while reducing the chance of advisers distributing misleading or fraudulent advertisements. Fairview® is available to assist clients with updating their written policies and procedures to reflect the new requirements of the Advisers Act books and records rule. Clients are encouraged to adopt the revised manual on or before October 1st.