IAA Shares Regulatory Priorities with new SEC Chairman Atkins

IAA Urges Principles-Based and Tailored Approach to Adviser Oversight

May 2, 2025

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The Investment Adviser Association (IAA) sent a letter to SEC Chairman Paul Atkins outlining the Association’s key policy priorities and recommendations as he assesses the agency’s regulatory priorities affecting investment advisers and their clients. The IAA’s priorities are guided by certain key principles, including urging the SEC to deploy a flexible principles-based approach to regulations and tailoring its practices to the diverse range of adviser business models, including aligning them with the distinct needs of small businesses.

The SEC plays an essential role in overseeing nearly 16,000 registered investment advisers that, as fiduciaries, serve over 68 million investors and manage more than $144 trillion in assets. More than 92% of advisers are small businesses that employ 100 or fewer people.

“The IAA congratulates Paul Atkins on his confirmation as SEC Chairman and welcomes him back to the agency. We look forward to working with the Chairman and his staff on the many crucial issues facing our members, their clients, and the markets. We stand ready to collaborate with the SEC in developing a regulatory environment that is fair, principles-based, and focused on protecting investors while fostering innovation and economic growth” said IAA President & CEO, Karen Barr.

The IAA recommends the SEC prioritize the following regulatory actions:

• Extend compliance deadlines and provide relief for newly adopted anti-money laundering rules and amendments to Regulation S-P and Form PF.
• Advance policies facilitating electronic delivery of required disclosures.
• Issue additional interpretive guidance under the Marketing Rule.
• Promote capital formation by expanding access for all investors to a broader array of investment opportunities.
• Modify the Custody Rule and Pay-to-Play Rule in a principles-based, practical manner.

We also encourage meaningful reforms to SEC processes, including:

• Implementing comprehensive cost-benefit analyses during rulemaking that considers both the economic costs and the compliance challenges for advisers, both in isolation and on a cumulative basis.
• Promoting proactive collaboration with compliance officers.
• Tailoring regulatory practices to firm size and business models.
• Focusing enforcement on misconduct that results in investor harm.
• Engaging with industry stakeholders prior to proposing rules or issuing guidance.

For more information about the IAA and our policy priorities, please visit www.investmentadviser.org.