The Index Industry Association (IIA) submitted a response to the U.S. Securities and Exchange Commission’s (Commission) request for comment on “Certain Information Providers Acting as Investment Advisers” (Comment Request).
In the response, the IIA noted that it does not agree with the Commission’s suggestion to regulate index providers as investment advisers under the Advisers Act or the Investment Company Act.
It is the IIA’s belief that such an outcome would directly contradict federal securities laws and regulations, as well as established market practices. And, as a general rule, index providers have taken the stance that they do not meet the definition of an “investment adviser” under the Advisers Act and, accordingly, index providers are not required to register as an investment adviser with the Commission.