Due to disruptions caused by COVID-19 pandemic, the Colorado Securities Commission issued a Temporary Order relief for investment adviser firms registered with the Colorado Division of Securities. According to the relief order, an investment adviser firm registered with the Colorado Securities Commissioner, “may perform any of the Form ADV filing, updating and customer delivery requirement set forth by the Colorado Securities Act and related regulations up to 45 days after such action is due to be performed.” In effect, with this order relief Colorado extends its ADV filing deadline.
Colorado’s Temporary Order relief for registered investment adviser firms follows similar relief orders issued by other securities regulators. You can click here to read about the Vermont Department of Financial Regulations filing extension. The U.S. Securities and Exchange Commission (SEC) also issued an order extending similar relief. The SEC’s order, “provides a temporary exemption from certain requirements of the Investment Advisers Act of 1940.” Per the SEC’s order, SEC registered investment advisers and exempt reporting advisers impacted by COVID-19 with a fiscal year end of December 31, 2019 now will have until the May 14, 2020 to file their Form ADV Amendments. Click here to read more about the SEC’s order announcement and the SEC’s requirements for its use.
While other states and Colorado are extending their ADV filing deadlines, RIA Compliance Consultants (RCC) does not have an exhaustive list of such regulators. RCC encourages you to check if your state securities regulators has granted similar relief.
RCC cautions there’s a possibility that an investment adviser’s use of this deadline extension could result in additional scrutiny from the securities regulator with respect to the investment adviser’s business continuity plan.
Colorado Relief Action – Additional Relief Items
Colorado’s relief action also provides a temporary exemption from registration filings for financial professionals such as investment adviser representatives that are in certain circumstances (click here to read those circumstances). Additionally, the order provides temporary relief from the requirement to obtain a physical signature on Forms U4. Investment adviser firms may submit Forms U4 electronically, without first obtaining physically signatures from individual representatives, provided that the firm:
- Provides the individual with a copy of the completed Form U4 prior to filing
- Obtains the individual’s written agreement prior to filing the form’s content is accurate and complete
- Retains the written acknowledgement in accordance with Colorado’s laws and regulations
- Obtains the applicant’s physical signature as soon as practicable
Any investment adviser firm relying on any provision of Colorado’s Temporary Order must keep a copy of the order to document reliance on it. The Colorado Temporary Order will be effective until April 30, 2020 unless it is extended or rescinded.
Free COVID-19 Webinar
In an effort to try to assist investment adviser firms dealing with COVID-19 pandemic, RIA Compliance Consultants is hosting a free webinar, “Compliance Tips for COVID-19 and Volatile Market,” on Thursday, March 26 at 12:00 PM CT. During this free webinar RCC will discuss Compliance Issues with COVID-19 and volatile markets. Topics will include privacy policies, succession planning, suitability, and business continuity planning. To register for this webinar please click the following link https://zoom.us/webinar/register/WN_RCsmPcGKRJ6N1gl67LsTuA
Posted by RCC
Labels: ADV Annual Offer Letter, Annual Amendment, COVID-19