With IARD/Web CRD Release 9.0, the NASD implemented several changes that went into effect on April 23, 2007. The most significant of these changes is the ability for registered investment advisor firms to post their Form ADV Part II online. This new update has not received the widespread media coverage that the release of the new Form ADV Part II will certainly see, but its implementation is significant. With the new functionality, the general public is now able to view registered investment advisor firm disclosure brochures through the Investment Adviser Public Disclosure site (www.adviserinfo.sec.gov).
In response to the NASD’s release, the U.S. Securities & Exchange Commission’s official position is that posting the Form ADV Part II is neither encouraged nor discouraged. In other words, at this time SEC registered investment advisor firms can certainly post their Form ADV Part II online, but a mandatory deadline has not been set. On the other hand, at least two states have mandated the use of this functionality. According to an e-mail sent from the California Securities Regulation Division, any amendments to Form ADV Part II after April 24 should now be posted directly on the IARD system. All California registered investment advisor firms must post their current Form ADV Part II directly with IARD within 60 days after April 24. The Virginia Division of Securities and Retail Franchising also issued an e-mail, dated April 26, 2007, requiring state registered firms to post their Form ADV Part II online as well.
If your investment advisor firm is registered at the state level, be on the lookout for notices or e-mails requiring you to submit the Form ADV Part II through IARD. Also, stay tuned to our website as we will continue to post updates to this new requirement when they become available. If you are registered with a state that requires the posting of Part II on IARD, give us a call to find out how we can assist your investment advisor firm in complying with the new rule. In addition to ensuring your Form ADV Part II is posted in the proper manner, we also can conduct a thorough review of your entire Form ADV and provide your investment advisor firm with an objective review of the document.