What are SEC-Registered Investment Companies or Advisers?
SEC-Registered Investment Companies or Advisers are entities that are regulated by the Securities and Exchange Commission (SEC) under the Investment Company Act of 1940 or the Investment Advisers Act of 1940. These entities are involved in the management and investment of pooled assets, such as mutual funds, exchange-traded funds (ETFs), and private investment funds.
Due to their strict regulatory oversight and transparency requirements under the SEC, these companies are exempt from Beneficial Ownership Information (BOI) reporting under the Corporate Transparency Act (CTA). The exemption recognizes that SEC-registered investment companies and advisers already comply with extensive disclosure and reporting obligations that ensure transparency in their operations and ownership.
Key Exemptions:
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Investment Companies: Entities registered under the Investment Company Act of 1940, including mutual funds and other publicly traded investment vehicles.
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Investment Advisers: Firms or individuals registered under the Investment Advisers Act of 1940 that manage assets for clients and provide investment advice on securities.
These exemptions reduce the regulatory burden for entities already subject to significant oversight by the SEC, ensuring that they are not required to submit duplicate or redundant reports to FinCEN.
