On March 13, 2017, the Staff of the Securities and Exchange Commission released a rare information update on arrangements involving unregistered entities providing investment advisory services through an affiliated registered investment adviser.
The update summarizes the core representations and undertakings that the Staff requires for these arrangements under a series of no-action letters dating back to the 1990s, the Unibanco letters, governing when “participating affiliates” are subject to SEC registration. While the update does not impose new requirements, it likely will standardize the representations and undertakings in this area. It also encourages the submission of the relevant documentation by email to the Division of Investment Management’s Office of Chief Counsel.