On Thursday, November 18 at 12:00 PM CST, president of RIA Compliance Consultants Bryan Hill will discuss discuss compliance issues related to the Form ADV Part 3 relationship summary. He will share common Form ADV Part 3 deficiencies identified in examinations by the SEC and provide best practice for an investment adviser to meet the Form ADV Part 3 requirements.
Category Archives: ADV Part 3
SEC Updates Form ADV Part 3/CRS FAQs for Investment Advisers
March 22, 2021
On March 5, 2021, the U.S. Securities and Exchange Commission (“SEC”) added three new questions and answers to its website page with Frequently Asked Questions (“FAQs”) on the Form CRS/Form ADV Part 3 for SEC registered investment adviser serving retail investors. The first new Q&A addresses situations in which an investment adviser or broker dealer with a Form CRS/Form ADV Part 3 filing obligation is dually registered or affiliated with a firm that does not have a Form ADV Part 3/Form CRS filing obligation. The second and third Q&A clarify when and how an SEC-registered investment adviser or broker dealer must file and disseminate the Form ADV Part 3/Form CRS (also referred to as a “relationship summary”) if material and/or nonmaterial changes have occurred.
SEC Announces 2021 Examination Priorities for RIAs
March 15, 2021
On March 3, 2021, the Division of Examinations (formerly known as the “Office of Compliance Inspections and Examinations”) of the U.S. Securities and Exchange Commission (“SEC”) released its 2021 Examination Priorities, an annual report discussing the Division of Examination’s areas of focus including investment advisers registered with the SEC (“RIAs”) for the coming year. In this report, the Division of Examinations (“Division”) noted that it intends to continue to prioritize examinations of SEC registered investment advisers, broker-dealers, and dually registered or affiliated firms, particularly those that have never been examined or have not been examined recently. In doing so, the Division will emphasize protection of retail investors and those saving for retirement.
SEC Roundtable on Regulation Best Interest and Form CRS
November 10, 2020
On October 26, 2020, the United States Securities and Exchange Commission (“SEC”) hosted an online roundtable discussion on Regulation Best Interest and Form CRS, with contributions from senior staff at the SEC and the Financial Industry Regulatory Authority (“FINRA”). Divided into two panels, the online roundtable focused on issues and observations made by SEC and FINRA staff (referred to collectively here as “the staff”) regarding Regulation Best Interest and Form CRS. To view the archived webcast, click here.
SEC Issues Joint Statement on New FAQs Focusing on Disciplinary Disclosures for Form CRS/Form ADV Part 3
November 02, 2020
On October 8, 2020, the United States Securities and Exchange Commission (“SEC”) issued a new joint statement from Chairman Jay Clayton, Dalia Blass, Director of the Division of Investment Management, and Brett Redfearn, Director of the Division of Trading and Markets regarding the Form ADV Part 3. In the statement, the SEC Chairman and Directors discussed the importance for investment adviser and broker dealer firms to clearly and succinctly make required disciplinary disclosures in the Form CRS/Form ADV Part 3. The statement highlighted the publication of several new FAQs for the Form CRS/Form ADV Part 3, which are now available here. To read the SEC’s joint statement, click here.
Investment Advisers Disclosing Disciplinary Events on Form ADV Part 3
September 22, 2020
Intended to be a concise and easily understandable disclosure for retail investors, the United States Securities and Exchange Commission (“SEC”) implemented the Form CRS/Form ADV Part 3 relationship summary to help SEC registered investment advisers provide information to their retail investor clients about the relationships and services the investment adviser firm offers, fees and costs that retail investors will pay, specified conflicts of interest and standards of conduct, and disciplinary history. To learn more about the SEC’s requirements of Form CRS/Form ADV Part 3, please see our website page at https://www.ria-compliance-consultants.com/form-adv-part-3-faqs/ .
SEC Publishes New Website for Main Street Investors
June 22, 2020
On June 15th, 2020, the United States Securities and Exchange Commission (“SEC”) announced a new website designed for Main Street Investors, intended to help retail investors navigate the new Form CRS/Form ADV Part 3. Published in a “Question and Answer” format, the website explains to retail investors the purpose of the Form CRS/Form ADV Part 3 and describes the information they can expect to find in the Form CRS/Form ADV Part 3. Click here to view the SEC’s new website for Main Street Investors. As an SEC registered investment adviser firm prepares its Form CRS/Form ADV Part 3 training for its supervised persons, RIA Compliance Consultants recommends that a review of the Main Street Investors website should be included as a component of such compliance training.
Oklahoma Withdraws Requirement for State Registered Investment Advisers to File Form ADV Part 3
June 20, 2020
On June 19, 2020, the Oklahoma Department of Securities announced the withdrawal (effective immediately) of its recent requirement that state registered investment adviser firms must file the Form CRS/Form ADV Part 3 relationship summary as part of the Form ADV filing.
Form CRS/Form ADV Part 3 Testing for Compliance
June 18, 2020
With the fast approaching deadline to file and deliver the new Form CRS/Form ADV Part 3 relationship summary, investment adviser firms registered with the United States Securities and Exchange Commission (“SEC”) must take steps to test their compliance with this Form CRS/Form ADV Part 3 rule. In its recent Risk Alert, the SEC’s Office of Compliance Inspections and Examinations (“OCIE”) discussed what SEC registered investment adviser firms can expect from an examination that focuses on Form CRS/Form ADV Part 3 compliance. Click here to read the SEC’s Risk Alert.
Form ADV Part 3 Conversation Starters
June 16, 2020
The filing and delivery deadline for the new Form CRS/Form ADV Part 3 relationship summary is fast approaching, and many investment adviser firms have not yet prepared the answers for the ADV Part 3 Conversation Starters which are included in the text of a Form ADV Part 3 relationship summary.
