The United States Securities and Exchange Commission (“SEC”) recently adopted the long-awaited amendments to Part 2 of Form ADV and related rules under the Investment Advisers Act of 1940. The Form ADV Part 2 amendments will require all investment advisors registered with the SEC to prepare and file plain English narrative brochures and supplements. SEC registered advisors will now be required to file these narrative brochures electronically through the IARD system in a text searchable PDF format. This filing process for the new Form ADV Part 2 is a task that state registered investment advisor firms have been required to do for sometime now but this will be a new process for SEC registered investment advisor firms.
Category Archives: ADV Part 2
Today, the United States Securities and Exchange Commission (“SEC”) passed long-proposed changes to the disclosure statements that federally registered investment advisers provide regulators and clients. Originally, the SEC proposed changes to Form ADV Part 2 in 2000. That proposal was never adopted, but a second proposal was issued in 2008 and finally passed today.
During the keynote address at the Compliance and Legal Society of the Securities Industry and Financial Markets Association 2010 Annual Seminar on May 6, 2010 (click here to read the entire speech), Mary Shapiro, the Chairman of the U.S. Securities and Exchange Commission (“SEC”), stated that her staff is preparing to present to the full Commission a proposal regarding adoption of Form ADV Part 2.
SEC Commissioner indicates SEC to Re-Consider New Form ADV Part 2 for Investment Advisers
May 04, 2010
In a speech at the Investment Adviser Association Annual Conference on April 29, 2010 (click here to read the entire speech), Luis Aguilar, Commissioner at the United States Securities and Exchange Commission (SEC), stated the SEC is expected to soon revisit proposed changes to Form ADV Part II. According to Commissioner Aguilar, “the need to update Part II has been clear for over a decade.” In April 2000, the SEC originally proposed comprehensive amendments to Part I and II of Form ADV. However, at that time only changes to Part I were passed and the proposed changes to Part II were allowed to lapse without implementation. Then, in March of 2008, the SEC re-proposed various amendments to Part II.
SEC to Consider Final Amendments to Form ADV Part 2 in December 2008 – Start Preparing by Joining Our Free Webinar on Thursday, November 19, 2008
November 05, 2008
According to the Investment Adviser Association (IAA), the U.S. Securities and Exchange Commission (SEC) recently sent a letter to IAA Executive Director David Tittsworth. The letter, signed by SEC Chairman Christopher Cox, stated that the “tentative schedule for consideration of final amendments to Form ADV, Part 2 is early December 2008.” The letter went on to state the SEC will be considering the approximately 80 comment letters it received. The letter did not give an indication of when the new Form ADV Part 2 rule would be passed. However, the letter is a clear indication that the new Form ADV, Part 2 is still on the SEC’s short-term agenda.
New Form ADV Part 2 Proposed Rule
September 26, 2008
In March 2008 the U.S. Securities and Exchange Commission (“SEC”) proposed material changes to the disclosure and format requirements of the Form ADV Part 2 for a registered investment adviser. The SEC received numerous comments regarding its proposal this spring and could take action in the near future. If the SEC adopts the proposed new Form ADV Part 2 in whole or part, it undoubtedly will take a significant amount of effort by a registered investment adviser over relatively short amount time to meet the proposed requirements. However, an investment adviser can start to prepare for this possible regulatory change by taking the time now to more fully understand the likely changes and impact of the proposed new Form ADV Part 2. RIA Compliance Consultants, Inc. encourages registered investment advisor firms to read the proposed rule, particularly the new Form ADV Part 2 instructions. You can view the proposed rule by clicking here. The proposed instructions begin on page 123.
Proposed New Form ADV Part 2 – Table of Contents and Index Required
September 12, 2008
According to the proposed new Form ADV Part 2 rule, registered investment advisors will be required to insert a table of contents at the beginning of their brochures and an index at the end of their brochures.
Proposed New Form ADV Part 2A Will Require a “Material Changes” Page
September 12, 2008
According to the proposed new Form ADV Part 2 rule offered earlier this year for consideration by the U.S. Securities and Exchange Commission (“SEC”), registered investment advisors will be required to insert a Material Changes page at the beginning of their brochures. Material changes could be summarized on the Cover Page of the brochure or could be included on a separate Material Changes page which would appear immediately after the Cover Page and before the Table of Contents. A third alternative will be to include a separate communication that would accompany the brochure.
The new Form ADV Part 2 proposal outlines numerous changes regarding additional and more detailed disclosures of a registered investment advisor’s services, conflicts of interests and material arrangements. However, the most significant new requirement under the proposed rule may be an administrative one.
