SEC Divisions Provide Compliance Guide for Regulation S-AM
The SEC’s Division of Trading and Markets and Division of Investment Management have issued a “Small Entity Compliance Guide” for new Regulation S-AM, which limits customer solicitations based on eligibility information. The Guide indicates that customers must be given at opt-out option that lasts at least 5 years and that customers must be given a “reasonable and simple method” of opting out including a check-box form, an electronic opt-out, or a toll-free number. The Guide also notes that the opt-out may be included with the privacy notice required by Regulation S-P. The Guide refers covered persons (e.g. broker-dealer, investment adviser, investment companies) to the model forms included as an appendix to the Regulation.
OUR TAKE: Regulation S-AM is just one more compliance item for regulated entities. At least, the SEC has tried to simplify compliance as much as possible.