Division of Investment Management
The Division of Investment Management (Division) works to protect investors, promote informed investment decisions and facilitate appropriate innovation in investment products and services through regulating the asset management industry. The Division is responsible for the Commission's regulation of the investment management industry, including investment companies, investment advisers and certain insurance products. The Division also administers the Commission's regulation of the activities of certain investment advisers under the Investment Advisers Act. The Division's work is generally carried out by the following groups:
Chief Accountant's Office
The Chief Accountant's Office is responsible for: (1) providing advice to help ensure the full and fair disclosure of financial information by investment companies and investment advisers; (2) rendering interpretations as to the meaning and application of rules relating to the form and content of financial statements required to be filed by investment companies and investment advisers; and (3) recommending the establishment, in collaboration with the Commission's Office of the Chief Accountant, of sound and uniform standards of auditing and accounting procedures and practices with respect to investment companies and investment advisers.
Chief Counsel's Office
The Chief Counsel's Office is primarily responsible for issuing no-action and interpretive letters. The office also is responsible for providing informal guidance on inquiries it receives (e.g., telephone and e-mail inquiries, review of registration statements for the Division of Corporation Finance) related to issues with respect to the Investment Company Act, the Investment Advisers Act, and other laws and regulations, such as the Exchange Act, Freedom of Information Act, and Department of Labor requirements for employee-benefit plans. The office also handles tips, complaints, and referrals.
Enforcement Liaison Office
The Enforcement Liaison Office provides legal guidance and advice to the Division of Enforcement on investigations that involve potential violations of the Investment Company Act and the Investment Advisers Act, or that implicate the Division of Investment Management's policies and programs. The office's duties also include advising the Division of Enforcement on applications submitted by barred individuals to re-enter the financial services industry, reviewing requests from defendants or respondents that advise or underwrite specialized investment companies seeking relief from automatic disqualifications that are triggered by enforcement actions, and reviewing new or amended investment adviser registration forms to identify disciplinary events that might warrant enforcement action.
Disclosure Review Office
The Disclosure Review Office is primarily responsible for the analysis and review of investment company filings under the Federal securities laws. These responsibilities include the review of initial registration statements, post-effective amendments thereto, and proxy statements. The office is also primarily responsible for reviewing financial statements of certain investment companies as required by the Sarbanes-Oxley Act of 2002.
Exemptive Applications Office
The Exemptive Applications Office is primarily responsible for the review and analysis of applications requesting orders under the Investment Company Act and its related rules. The office also drafts the Commission releases related to those applications.
Insured Investments Office
The Insured Investments Office is responsible for all aspects of the regulation of variable annuities and variable life insurance under the Federal securities laws, as well as other insurance products that are securities. The office's responsibilities include the analysis and review of filings under the Federal securities laws for variable annuities, variable life insurance, and other insurance contracts and for mutual funds offered as investment options under variable insurance contracts. This includes review of initial registration statements, post-effective amendments thereto, proxy statements, and reviews of financial statements required by the Sarbanes-Oxley Act of 2002. The office also processes exemptive applications; responds to requests for information, interpretive guidance and no-action assurance; and recommends rules related to insurance products that are securities. The office also provides technical assistance on legislation related to insurance products.
Investment Adviser Regulation Office
The Investment Adviser Regulation Office reviews and considers whether the Commission should propose, adopt, or amend rules under the Investment Advisers Act and other Federal securities laws that affect investment advisers, and responds to interpretive and technical questions from inside and outside the Commission. This office also reviews and processes applications from investment advisers requesting exemptions from various provisions of the Investment Advisers Act. The staff oversees the administration of the Investment Adviser Registration Depository, the electronic filing registration system for advisers, and the Private Fund Reporting Depository, the electronic filing system for private fund information. The office, in consultation with the Chief Counsel's Office, issues guidance regarding the interpretation of the Investment Advisers Act and rules thereunder and interpretation of other securities laws and regulations that govern investment advisers. The office prepares Congressional testimony and reviews and assists in drafting proposed legislation.
Investment Company Rulemaking Office
The Investment Company Rulemaking Office considers whether the Commission should propose, adopt, or amend rules and forms under the Investment Company Act and makes recommendations to the Commission on rulemaking initiatives as appropriate. The office reviews rulemaking initiatives under the Securities Act and the Exchange Act as they apply to registered investment companies. In consultation with the Chief Counsel's Office, the office provides advice on the interpretation and application of recent rulemakings. The office also prepares Congressional testimony and reviews and assists in drafting proposed legislation and responding to Congressional inquiries.
Risk and Examinations Office
The Risk and Examinations Office serves as a resource to the Division and the Commission by providing practical review and analysis of the asset management industry. The office pursues its mission by (1) managing, monitoring, and analyzing the industry data the Division receives; (2) providing ongoing financial analysis of the asset management industry, including in particular the risk-taking activities of investment advisers and investment companies; (3) gathering and analyzing through its examination function operational information directly from participants in the asset management industry; and (4) otherwise maintaining industry knowledge and technical expertise to provide other analyses that may support the Division's activities.