SEC Registration
The Purpose and Benefits of Regulation
At the Securities and Exchange Commission's website, you will find data on New Capital Management LP on file. As SEC registrant #131658, I am bound to comply with the regulations set forth through this registration. Additionally, the major regulatory document for client reference is called Form ADV Part II. I am required to provide this document to you at the outset of our relationship.
A bit of history: in the wake of the October 1929 Stock Market Crash, which triggered the Great Depression, the United States Congress established (in 1934) the Securities and Exchange Commission (the “SEC”) to restore public confidence and trust in America’s public markets. A few years later, in 1940, Congress passed an additional law, The Investment Advisors Act. This law noted that “investment advisers are of national concern, in that, among other things…their advice, counsel, publications, writings, analyses, and reports customarily relate to the purchase and sale of securities traded on national securities exchanges…in such volume as substantially to affect interstate commerce, national securities exchanges and other securities markets, the national banking system and the national economy.”
The Investment Advisors Act of 1940 came to regulate investment advisors in America, and placed responsibility for performing this regulation with the Securities and Exchange Commission. In addition, the Texas State Securities Board now accomplishes its own regulation of Texas advisors by “piggy-backing” on the same SEC regulations. As an investment advisor with over (the SEC threshold) of $100 million in assets in my care, I am regulated by the 1940 Investment Advisors Act, by which I am required to file and maintain publicly available information with the SEC. Further, this registration establishes me as a fiduciary, by which I am bound to work in the interests of my beneficiaries (i.e., my clients) with undivided loyalty.
I believe that regulation of the securities industry is vital to preserving the confidence of investors and I take seriously the requirement to comply with all federal and state regulations.