Does My Firm Need to Submit the Form ADV Part II to Regulators?

July 12, 2005

A common question asked by many advisors during the registration process is whether the firm needs to file the Form ADV Part II with the appropriate regulator.

As you know, the IARD system went live in early 2001. Initial plans were that the entire Form ADV would be filed online through the IARD system; however, to date, it is capable of only accepting the Part I. The Part II is expected to go online at some point in the future.

With this in mind, the SEC currently requires advisors under its jurisdiction to keep the ADV Part II current and have a master copy as part of its books and records. The Part II does not need to be filed with the SEC, but firms must be prepared to provide it to the SEC upon request. Most state regulators have followed the SEC’s lead and do not require notice filed SEC firms to submit the Part II unless requested.

When it comes to state registered firms, the rules are different. All states require that the Part II and client agreements be filed during the registration process and any time an amendment is made. In fact, the State of California now requires an updated Part II to be accompanied with a State Registered Investment Advisor Execution Page. In addition, some states require additional documents to be filed as well. New Hampshire requires state-registered firms to submit a copy of their compliance and procedures manual during the registration process.

If your firm has a question about where to send advisory documents or exactly which documents must be filed with your state, please let us know.

Posted by Bryan Hill
Labels: Form ADV, IARD