An investment adviser is required to prepare and submit a completed Form ADV as part of the initial registration process. In addition to the review by the U.S. Securities and Exchange Commission (“SEC”) or state securities regulator(s) for purposes of determining whether to approve or deny an application for investment adviser registration, the Form ADV Part 2 is also used as the investment adviser’s disclosure document which is required to be provided to all investment advisory clients.
Additionally, an investment adviser registered with the SEC must meet certain requirements concerning the delivery of the investment adviser’s disclosure brochure, Form ADV Part 2A. Under SEC Rule 204-3(b), each year, within 120 days of the investment adviser firm’s fiscal year end, the investment adviser must deliver to every client an updated disclosure brochure that includes a summary of material changes or deliver to every client a summary of material changes that includes an offer to provide a copy of the updated disclosure brochure and information on how a client may obtain a copy of the brochure. Upon a client’s request, an investment adviser must provide a copy the firm’s Form ADV Part 2A. As part of a regulatory exam, an investment adviser may be required to prove compliance with the disclosure brochure annual delivery requirements. Investment advisers should keep a dated copy of the annual offer letter and a list of all clients that it was sent to. Additionally, investment advisers should maintain a log of all clients that requested a copy of the disclosure brochure and indicate the date that the disclosure brochure was delivered to the client.
Most state securities regulators have similar disclosure brochure delivery requirements for state registered investment adviser firms. State registered investment advisers should review the applicable state securities regulations to make sure that the investment adviser properly complies with the state securities regulations for disclosure brochure delivery requirements.
In addition to the sample Form ADV Annual Offer letter, RIA Compliance Consultants offers several other forms that your investment adviser may use to complete the ongoing compliance requirements pertaining to the Form ADV delivery requirements.
- Form ADV Request / Receipt Log: Track and document clients’ requests for a copy of the firm’s Form ADV.
- Form ADV Revisions Log: Document reviews and changes to the firm’s Form ADV.
By clicking here, your investment adviser firm can purchase for only $25 any of the above mentioned sample forms from our online store.
Posted by Bryan Hill
Labels: ADV Annual Offer Letter, Annual ADV Offer Letter, Compliance Forms, Compliance Program, Compliance Tool, Compliance Training