IAs will be required to maintain additional materials related to the calculation and distribution of performance information beginning October 2017. Currently, advisers are only required to maintain records supporting performance claims that were distributed to 10 or more people. The amendments will now require this type of documentation to be kept for all information supporting performance claims, even if given only to one investor or prospect.
The amendments will also require IAs to maintain communications relating to the performance of all managed accounts or securities recommendations, including original communications that were received and sent. This means that IAs will now be required to ensure that all communications — sent by both IAs and their employees — are retained on each IA’s record keeping system. This action will ensure that emails or other employee communications containing performance information will have the appropriate books and records back-ups and comply with all other book and record keeping rules.