SEC Seeks Comment on 'Information Providers' Acting as Advisors

In recent decades, Gensler said, "the use of information providers has grown, changing the asset management industry."

For instance, "registered funds that track indexes have grown substantially to over $10 trillion of assets under management. These indexes have grown not only in size but also in available types, ranging from broad-based indexes for general use to specialized, narrowly-focused ones designed for particular users. Having evolved in size and scope, these indexes are increasingly influential," he said.

"Thus, an index provider's decision to include a particular security in an index often influences users of the index to purchase or sell securities. This raises questions about whether the index provider is providing investment advice," Gensler said.

Model portfolio providers and pricing services, he continued, "have similarly grown and evolved. Each of these providers' activities raise questions regarding our oversight of investment advisers and how we best protect the public."