On August 15, 2022, the Committee submitted a letter in response to a request for comment from the Securities and Exchange Commission (“SEC”) on “Certain Information Providers Acting As Investment Advisers” (the “Request for Comment”). The Request for Comment seeks input on the extent to which financial index providers, model portfolio providers, and pricing services (together, “information providers”) are or should be regulated as “investment advisers” under the Investment Advisers Act of 1940 (the “Advisers Act”) or the Investment Company Act of 1940 (the “Company Act”), including the costs and benefits of regulating them as such. Our letter focuses on the providers of financial indices (“index providers”).  Part I of our letter reviews the operation of index providers and their role in the investment process. It also identifies important distinctions between index providers and investment advisers. Part II reviews the legal issue as to whether index providers are “investment advisers” under the Advisers Act or Company Act and concludes that they are not. Part III argues that regulation of index providers as investment advisers is unnecessary and undesirable from a policy perspective.


The full letter is available here.