Investment advisors will have to reveal more details about their separately managed account businesses, including data on borrowings and derivatives positions, under new measures planned by the SEC.

Officials at the US watchdog intend to add questions to registration and reporting forms in a bid to improve the quality of information that investment advisers provide to their clients and SEC itself.

As well as borrowing and derivatives, other aspects of their advisory business, including branch office operations and the use of social media, will need to be explained.

“These amendments are an important step in a series of rulemakings to enhance the SEC’s monitoring and regulation of the asset management industry,” said SEC chair Mary Jo White. 

“Requiring investment advisers to report this additional information will provide investors and the Commission with a better understanding of the risk profile of each adviser and the industry as a whole.”

Meanwhile, others amendments will require advisers to maintain additional records related to the calculation and distribution of performance information.

These records, the SEC claims, will be key to evaluating adviser performance claims and could reduce the incidence of misleading or fraudulent advertising and communications by advisers.

Advisers will need to begin complying with the new rules by October, 2017.