Sponsors (22)
The bill strengthens confidentiality protections for adviser data and requires transparent rulemaking, improving market integrity and privacy for firms, but risks higher costs, compliance uncertainty, and potential delays in SEC enforcement if access limits are overly restrictive.
Investors and taxpayers: confidential adviser data will be better protected, reducing the risk of improper disclosures and supporting overall market integrity.
Investment advisers and financial firms: stronger protections for sensitive proprietary data the SEC collects will reduce the risk of leaks or misuse of commercially sensitive information.
Financial firms and federal stakeholders: directing the SEC to use notice-and-comment rulemaking within a year increases transparency and gives stakeholders a formal opportunity to shape protections.
Federal employees and the public: tighter limits on SEC staff access to collected information could slow internal information sharing and delay enforcement or supervisory actions.
Taxpayers and market participants: new rulemaking and compliance controls will raise SEC administrative costs that could be passed through to taxpayers or financial firms and their clients.
Investment advisers and financial firms: leaving a broad definition of "sensitive" to be specified later by the SEC may create compliance uncertainty and transitional burdens until rules are finalized.
Based on analysis of 2 sections of legislative text.
Requires the SEC to adopt, via notice-and-comment within one year, policies protecting sensitive nonpublic proprietary information from investment advisers.
Official title: To amend the Investment Advisers Act of 1940 to require the Securities and Exchange Commission to adopt data protection policies for information the Commission receives from investment advisers, and for other purposes.
Introduced November 19, 2025 by David Scott · Last progress November 19, 2025
Requires the Securities and Exchange Commission to write formal rules within one year to protect sensitive, nonpublic proprietary information it collects from investment advisers. The rules must cover when the SEC may request such information, require safeguards proportional to sensitivity, limit internal access to appropriate staff, and prohibit unlawful use or disclosure.