Sec. 204. annual and other reports

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## Sec. 204 annual and other reports **[**80b–4**]** ###

(a)In General Every investment adviser who makes use of the mails or of any means or instrumentality of interstate commerce in connection with his or its business as an investment adviser (other than one specifically exempted from registration pursuant to section 203(b) of this title), shall make and keep for prescribed periods such records (as defined in section 3(a)(37) of the Securities Exchange Act of 1934), furnish such copies thereof, and make and disseminate such reports as the Commission, by rule, may prescribe as necessary or appropriate in the public interest or for the protection of investors. All records (as so defined) of such investment advisers are subject at any time, or from time to time, to such reasonable periodic, special, or other examinations by representatives of the Commission as the Commission deems necessary or appropriate in the public interest or for the protection of investors. ###

(b)Records and Reports of Private Funds ####

(1)In general The Commission may require any investment adviser registered under this title— #####

(A)to maintain such records of, and file with the Commission such reports regarding, private funds advised by the investment adviser, as necessary and appropriate in the public interest and for the protection of investors, or for the assessment of systemic risk by the Financial Stability Oversight Council (in this subsection referred to as the “Council”); and #####

(B)to provide or make available to the Council those reports or records or the information contained therein. ####

(2)Treatment of records The records and reports of any private fund to which an investment adviser registered under this title provides investment advice shall be deemed to be the records and reports of the investment adviser. ####

(3)Required information The records and reports required to be maintained by an investment adviser and subject to inspection by the Commission under this subsection shall include, for each private fund advised by the investment adviser, a description of— #####

(A)the amount of assets under management and use of leverage, including off-balance-sheet leverage; #####

(B)counterparty credit risk exposure; #####

(C)trading and investment positions; #####

(D)valuation policies and practices of the fund; #####

(E)types of assets held; #####

(F)side arrangements or side letters, whereby certain investors in a fund obtain more favorable rights or entitlements than other investors; #####

(G)trading practices; and #####

(H)such other information as the Commission, in consultation with the Council, determines is necessary and appropriate in the public interest and for the protection of investors or for the assessment of systemic risk, which may include the establishment of different reporting requirements for different classes of fund advisers, based on the type or size of private fund being advised. ####

(4)Maintenance of records An investment adviser registered under this title shall maintain such records of private funds advised by the investment adviser for such period or periods as the Commission, by rule, may prescribe as necessary and appropriate in the public interest and for the protection of investors, or for the assessment of systemic risk. ####

(5)Filing of records The Commission shall issue rules requiring each investment adviser to a private fund to file reports containing such information as the Commission deems necessary and appropriate in the public interest and for the protection of investors or for the assessment of systemic risk. ####

(6)Examination of records #####

(A)Periodic and special examinations The Commission— ######

(i)shall conduct periodic inspections of the records of private funds maintained by an investment adviser registered under this title in accordance with a schedule established by the Commission; and ######

(ii)may conduct at any time and from time to time such additional, special, and other examinations as the Commission may prescribe as necessary and appropriate in the public interest and for the protection of investors, or for the assessment of systemic risk. #####

(B)Availability of records An investment adviser registered under this title shall make available to the Commission any copies or extracts from such records as may be prepared without undue effort, expense, or delay, as the Commission or its representatives may reasonably request. ####

(7)Information sharing #####

(A)In general The Commission shall make available to the Council copies of all reports, documents, records, and information filed with or provided to the Commission by an investment adviser under this subsection as the Council may consider necessary for the purpose of assessing the systemic risk posed by a private fund. #####

(B)Confidentiality The Council shall maintain the confidentiality of information received under this paragraph in all such reports, documents, records, and information, in a manner consistent with the level of confidentiality established for the Commission pursuant to paragraph (8). The Council shall be exempt from section 552 of title 5, United States Code, with respect to any information in any report, document, record, or information made available, to the Council under this subsection. ####

(8)Commission confidentiality of reports Notwithstanding any other provision of law, the Commission may not be compelled to disclose any report or information contained therein required to be filed with the Commission under this subsection, except that nothing in this subsection authorizes the Commission— #####

(A)to withhold information from Congress, upon an agreement of confidentiality; or #####

(B)prevent the Commission from complying with— ######

(i)a request for information from any other Federal department or agency or any self-regulatory organization requesting the report or information for purposes within the scope of its jurisdiction; or ######

(ii)an order of a court of the United States in an action brought by the United States or the Commission. ####

(9)Other recipients confidentiality Any department, agency, or self-regulatory organization that receives reports or information from the Commission under this subsection shall maintain the confidentiality of such reports, documents, records, and information in a manner consistent with the level of confidentiality established for the Commission under paragraph (8). ####

(10)Public information exception #####

(A)In general The Commission, the Council, and any other department, agency, or self-regulatory organization that receives information, reports, documents, records, or information from the Commission under this subsection, shall be exempt from the provisions of section 552 of title 5, United States Code, with respect to any such report, document, record, or information. Any proprietary information of an investment adviser ascertained by the Commission from any report required to be filed with the Commission pursuant to this subsection shall be subject to the same limitations on public disclosure as any facts ascertained during an examination, as provided by section 210(b) of this title. #####

(B)Proprietary information For purposes of this paragraph, proprietary information includes sensitive, non-public information regarding— ######

(i)the investment or trading strategies of the investment adviser; ######

(ii)analytical or research methodologies; ######

(iii)trading data; ######

(iv)computer hardware or software containing intellectual property; and ######

(v)any additional information that the Commission determines to be proprietary. ####

(11)Annual report to congress The Commission shall report annually to Congress on how the Commission has used the data collected pursuant to this subsection to monitor the markets for the protection of investors and the integrity of the markets. ###

(c)Filing Depositories The Commission may, by rule, require an investment adviser— ####

(1)to file with the Commission any fee, application, report, or notice required to be filed by this title or the rules issued under this title through any entity designated by the Commission for that purpose; and ####

(2)to pay the reasonable costs associated with such filing and the establishment and maintenance of the systems required by subsection (c). ###

(d)Access to Disciplinary and Other Information ####

(1)Maintenance of system to respond to inquiries #####

(A)In general The Commission shall require the entity designated by the Commission under subsection (b)(1) to establish and maintain a toll-free telephone listing, or a readily accessible electronic or other process, to receive and promptly respond to inquiries regarding registration information (including disciplinary actions, regulatory, judicial, and arbitration proceedings, and other information required by law or rule to be reported) involving investment advisers and persons associated with investment advisers. #####

(B)Applicability This subsection shall apply to any investment adviser (and the persons associated with that adviser), whether the investment adviser is registered with the Commission under section 203 or regulated solely by a State, as described in section 203A. ####

(2)Recovery of costs An entity designated by the Commission under subsection (b)(1) may charge persons making inquiries, other than individual investors, reasonable fees for responses to inquiries described in paragraph (1). ####

(3)Limitation on liability An entity designated by the Commission under subsection (b)(1) shall not have any liability to any person for any actions taken or omitted in good faith under this subsection. ###

(e)Records of Persons With Custody or Use ####

(1)In general Records of persons having custody or use of the securities, deposits, or credits of a client, that relate to such custody or use, are subject at any time, or from time to time, to such reasonable periodic, special, or other examinations and other information and document requests by representatives of the Commission, as the Commission deems necessary or appropriate in the public interest or for the protection of investors. ####

(2)Certain persons subject to other regulation Any person that is subject to regulation and examination by a Federal financial institution regulatory agency (as such term is defined under section 212(c)(2) of title 18, United States Code) may satisfy any examination request, information request, or document request described under paragraph (1), by providing the Commission with a detailed listing, in writing, of the securities, deposits, or credits of the client within the custody or use of such person. ###

(f)Data Standards for Reports Filed Under This Section ####

(1)Requirement The Commission shall, by rule, adopt data standards for all reports filed by investment advisers with the Commission under this section. ####

(2)Consistency The data standards required under paragraph

(1)shall incorporate, and ensure compatibility with (to the extent feasible), all applicable data standards established in the rules promulgated under section 124 of the Financial Stability Act of 2010, including, to the extent practicable, by having the characteristics described in clauses

(i)through

(vi)of subsection (c)(1)(B) of such section 124.