Democratic Commissioner Luis Aguilar said the added information disclosed on Form ADV should help retail investors make better decisions on the choice and retention of advisors.
During the Commission meeting, Chair Mary Jo White said her staff is developing recommendations to enhance the management and disclosure of liquidity risk by mutual funds and ETFs.
Additionally, she said new requirements for the stress testing of large investment advisors and large funds is in the works.
The SEC will accept comments on the proposed rules 60 days after they are published in the Federal Register, which should happen next week. However, the agency routinely accepts submissions after the formal deadline.
To see the proposed 104 pages of revisions to Form ADV, click here. To see the 506-page text of the new investment company rules, click here.