The regulator also announced a new proposal to increase transparency and disclosures for private fund managers such as private equity and hedge funds.
A letter from the industry association outlines what it calls overlap and inconsistencies between them.
Republican commissioner specifically mentioned the new outsourcing rule, pay-to-play enforcement and compliance periods for SEC rules.
Some call for the SEC to drop the proposal; others want clarity on which outsourcing duties should be vetted; and some are in favor, with changes.
Investment and retirement advisers—especially smaller shops—should take the time remaining to provide their feedback about the SEC’s proposed outsourcing rule, according to consulting firms.
The new rules, if approved, would likely require more catch-up by smaller firms to vet third-party providers, says a legal expert.
The SEC says the new rule proposals are responding to the growing trend in use of third-party vendors by financial advisers. An adviser association calls them ‘overly burdensome.’
Technology, investment management, and legal and compliance are the top three areas where advisory practices often turn to outside experts, according to Fidelity.