SIA Submits Comments to the SEC on Electronic Recordkeeping by Investment Companies and Investment Advisers

The Investment Adviser, Investment Company and Technology and Regulation Committees of the Securities Industry Association (SIA)* provides comments to the Securities and Exchange Commission (SEC) on a proposed amendment to rules under the Investment Company and Investment Adviser Acts regarding electronic recordkeeping by investment companies and investment advisers, Release Nos. IC-248900 and IA-1932; File No. S7-06-01. The proposed amendments are designed to expand the ability of mutual funds and advisers to use electronic storage media to maintain and preserve records, consistent with the goals of the recently enacted Electronic Signatures in Global and National Commerce Act (ESIGN Act).

While SIA, generally supports the amendments, it shares concerns about the provisions regarding the production of electronic records upon the request of the SEC. SIA believes the stringent requirement is neither appropriate or necessary, and is not consistent with other provisions of the rules related to record storage.

*SIFMA is the product of a merger between the Securities Industry Association (SIA) and The Bond Market Association (TBMA) in 2006.