Disclosure and Examination Requirements (§ 404)

The records and reports of an investment adviser will be deemed to include the reports and records of the private funds it advises. The legislation also directs the SEC to conduct periodic inspections of the records of private funds maintained by a registered adviser, and authorizes the SEC to conduct other examinations it deems necessary.

Generally, disclosure of information is protected to the same extent as if provided pursuant to the Advisers Act, and the SEC may not compel advisers to disclose proprietary information to the public—including sensitive, nonpublic information regarding investment or trading strategies, analytical or research methodologies, trading data, and intellectual property. Nonetheless, the SEC may not withhold information from Congress, a federal department, agency, or self-regulatory organization (SRO) requesting information within the scope of its jurisdiction, or a US court in connection with a federal enforcement action.