The United States Securities and Exchange Commission (“SEC”) recently announced changes to the Form ADV used by investment adviser firms to register with the SEC and state securities regulators. Two changes are of particular note. First, investment adviser firms will now be required to disclose all social media platforms the firm uses for business purposes, such as pages on Facebook, Twitter, or LinkedIn. In the event of a regulatory exam, investment adviser firms should also be prepared to produce records related to the content of those sites at any given point in time. The SEC rule does not require investment adviser firms to provide information about personal social media accounts held by employees or about social media sites whose content is generated by third parties and not controlled by the investment adviser. It is important to remember, however, that client communications made by the investment adviser firm’s employees on a personal account would still be subject to other applicable record keeping requirements, such as those relating to performance claims or solicitation. Click here to read the SEC rule release detailing the new requirements.
Registered Investment Advisors Can Utilize a Sample ADV Annual Offer Letter to Help Comply with Form ADV Part 2A Annual Delivery Requirements
April 17, 2013
An investment advisor firm registered with the U.S. Securities and Exchange Commission (“SEC”) must meet certain requirements concerning the delivery of the investment advisor firm’s disclosure brochure Form ADV Part 2A. Under SEC Rule 204-3(b), each year, within 120 days of the investment advisor firm’s fiscal year end, the investment advisor firm 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 the brochure.
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. The Form ADV must provide accurate, current, and consistent disclosures. The general instructions for the Form ADV provides the investment adviser with details regarding the frequency at which the investment adviser is required to update certain information in the Form ADV. At a minimum, an SEC registered investment adviser must file a Form ADV annual updating amendment at least annually within 90-days of the investment adviser’s fiscal year end. Most state securities regulators have similar requirements for a state registered investment adviser.
April 26, 2012
Under Rule 204-3 of the Investment Advisers Act of 1940, the U.S. Securities and Exchange Commission (“SEC”) requires registered investment advisers (“investment adviser”) to deliver to each client, annually within 120 days after the end of the investment adviser’s fiscal year and without charge, if there are material changes to the investment adviser’s brochure since the investment adviser’s last annual updating amendment:
October 27, 2011
For registered investment advisors, 2011 gave way to many changes as various provisions of the Dodd-Frank Wall Street Reform and Consumer Protection Act (“Dodd-Frank Act”) became effective. Understanding the changes made over this past year may help to confirm that your investment advisor is in compliance with the recent regulatory changes. Below is a brief overview of some of the regulatory changes that occurred during this past year.
April 12, 2011
As your investment adviser firm is getting ready to deliver the new Form ADV Part 2 to its investment advisory clients, you may be considering electronic delivery as an option.
April 08, 2011
If your investment advisor has filed the new Form ADV Part 2A, you can breathe a brief sigh of relief. However, now it is time to focus on the new delivery requirements. If your investment advisor is registered with the U.S. Securities and Exchange Commission (“SEC”) and filed the new Form ADV Part 2A, your investment adviser must now begin to deliver the new brochure to its investment advisory clients. Under the revised SEC Rule 204-3, an SEC registered investment advisor is generally required to deliver a disclosure brochure and one or more brochure supplements that contain all information required in Form ADV Part 2 to each client and prospective client.
March 23, 2011
For many investment advisors, the deadline for preparing and submitting the new Form ADV Part 2 is just days away.
Although the U.S. Securities and Exchange Commission (SEC) and most state securities regulators are already requiring the use of the new Form ADV Part 2 as part the application process for new investment advisors, the Colorado Division of Securities recently released a public notice stating that as of April 1, 2011 all new investment adviser applications must include the new narrative version of Form ADV Part 2.
November 03, 2010
The Securities Bureau of the Nebraska Department of Banking and Finance recently released an annual renewal notice reminding investment advisers registered with the State of Nebraska that their investment adviser registration expires on December 31, 2010. The notice by the Nebraska Securities Bureau states that in order to renew registration by January 1, 2011, all renewal fees must be paid by December 13, 2010 and all required documents must be submitted by December 23, 2010. One of these required documents is the new narrative version of Form ADV Part 2. This means that all investment advisers currently registered with State of Nebraska must submit the new Form ADV Part 2 via the CRD/IARD system on or before December 23, 2010. (Please note that this deadline set by the Nebraska Securities Bureau does not apply to a SEC registered investment adviser and is only notice filed with the State of Nebraska.)