SEC Adopts Electronic Storage Rules

Agency responds to ESIGN

By John M. Baker, Esq.

The Electronic Signatures in Global and National Commerce Act, or ESIGN, encourages federal agencies to accommodate electronic recordkeeping.

In response to ESIGN, the SEC today posted amendments to rules under the 1940 Act and the Advisers Act that expand the ability of registered investment companies and registered investment advisers to use electronic storage media to maintain and preserve records. Release Nos. IC-24991, IA-1945 (May 24, 2001).

The new rules are effective May 31, 2001. The adopting release is available online at

The SEC previously amended its transfer agent record retention rule to increase the flexibility and efficiency of transfer agent recordkeeping. Release No. 34-44227, 66 Fed. Reg. 21648 (Apr. 27, 2001). These amendments likewise are effective May 31, 2001.

This release does not seem to be available on the SEC web site, but the Federal Register site is at

The SEC has concluded that its broker-dealer recordkeeping rule was already consistent with ESIGN. Release No. 34-44238 (May 1, 2001). The interpretive release is available online at

Copyright 2001, John M. Baker, Esq., Stradley, Ronon, Stevens & Young, LLP, 1220 19th Street, N.W., Suite 700, Washington, DC 20036 – (202) 822-9611- Fax (202) 822-0140 This article was originally posted to the FundLaw List, To subscribe to FundLaw, send a blank e-mail to

Nothing herein is intended as legal or financial advice. The law is different in different jurisdictions, and the facts of a particular matter can change the application of the law. Please consult an attorney or your financial advisor before acting upon the information contained in this article.

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