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FinCEN Delays Effective Date of Investment Adviser Rule and Announces Revisit of Investment Adviser Rule Scope

Strategic Insights

— 1 min read

The U.S. Department of the Treasury's Financial Crimes Enforcement Network (FinCEN) announced its intention to delay the effective date of the Investment Adviser Rule from January 1, 2026, to January 1, 2028. This decision comes after FinCEN issued the Investment Adviser Rule in September 2024 to address illicit finance risks posed by investment advisers. The Investment Adviser Rule will now undergo a broader review through a formal rulemaking process, allowing investment advisers and other interested parties to comment on FinCEN's new proposal. Additionally, FinCEN plans to revisit its joint proposed rule with the Securities and Exchange Commission (SEC) requiring customer identification programs (CIPs) for registered investment advisers and exempt reporting advisers.

Key Takeaways:

  • FinCEN has delayed the effective date of the Investment Adviser Rule from January 1, 2026, to January 1, 2028.
  • The Investment Adviser Rule was issued in September 2024 to address ongoing illicit finance risks posed by investment advisers.
  • FinCEN plans to work with the SEC to revisit their joint proposed rule requiring CIPs for registered investment advisers and exempt reporting advisers.
  • The review of the Investment Adviser Rule scope will provide an opportunity for investment advisers and other interested parties to comment on FinCEN's new proposal.
  • Investment managers should keep an eye out for any future proposals and consider whether they would like to comment.
  • The Investment Adviser Rule includes registered investment advisers and exempt reporting advisers within the definition of "financial institution" under the Bank Secrecy Act.
  • Investment advisers and exempt reporting advisers will be required to establish risk-based anti-money laundering/counter financing of terrorism programs.

Statistics:

  • 2024: Year in which FinCEN issued the Investment Adviser Rule.
  • 2025: Year in which FinCEN announced its intention to delay the effective date of the Investment Adviser Rule.
  • 2026: Original effective date of the Investment Adviser Rule, which has been delayed to January 1, 2028.
  • 2028: New effective date of the Investment Adviser Rule.

Sources:

  • Akin's prior client alert (exact format not specified in the source material).
  • "FinCEN Announces Extension of Effective Date of Final Rule Imposed on Registered Investment Advisers and Exempt Reporting Advisers" by Mondaq Ltd. (c) Mondaq Ltd, 2025.

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