On July 5, 2011, the Kansas Securities Commissioner issued a letter to investment advisers registered with the U.S. Securities and Exchange Commission (“SEC”) that are also notice filed in Kansas regarding the SEC’s new rule switching mid-size investment advisers (with assets under management between $25 million to $100 million) from the jurisdiction of the SEC to state securities regulators.
Category Archives: Form ADV
NEW FORM ADV PART 2 DELIVERY REQUIREMENTS
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.
Form ADV Part 1 Custody Changes
November 15, 2010
As part of CRD/IARD Software Release 2010.4 (click here to access the release), the United States Securities and Exchange Commission (“SEC”) announced changes to the custody questions listed on Form ADV Part 1. Specifically, the following changes have been made to Item 9 of Form ADV Part 1:
SEC’s New Form ADV Part 2 Rule Now Effective
October 13, 2010
The U.S. Securities and Exchange Commissions (SEC) recently adopted amendments to the Form ADV Part 2 and related rules under the Investment Advisers Act of 1940. These changes are now effective. If your investment advisor has not already started the process of becoming familiar with the requirements of these changes, it should begin to do so in the very near future. New investment advisors requesting registration with the SEC will be required to submit the New Form ADV Part 2 after January 1, 2011. Existing SEC investment advisors will be required to submit the New Form ADV Part 2 with their first fiscal year end update after December 31, 2010. Since many investment advisors have a fiscal year end of December 31, this will mean that an investment advisor will need to file its New Form ADV Part 2 by March 31, 2011. While not all state securities regulators have determined what their plans are regarding the New Form ADV Part 2, most have indicated that they will eventually require the new format and many have indicated that they will currently accept it and will follow a timeline similar to the SEC.
Now that we are into a new year, can you confirm your registered investment advisor and its advisor representatives were properly renewed for 2010? Every year there are always a handful of firms that fail to submit renewal fees through the IARD system in a timely fashion. Therefore, even if you think the renewal payment was sent in time, please make sure your firm retrieves the Final Renewal Statement and confirms it is renewed for calendar year 2010.
2010 IARD Renewal & Form ADV Annual Amendment Requirements
November 02, 2009
Beginning Monday, November 16, 2009, registered investment advisor firms can access their 2010 Preliminary Renewal Statements via their IARD account. The Preliminary Renewal Statement must be paid, in full, by Friday, December 11, 2009. Because it takes approximately two days for payment to post to the IARD account, the funds should arrive no later than Wednesday, December 09, 2009, to ensure the money is posted to your IARD account by December 11.
Registered Investment Advisors Need to Monitor Outside Business Activities of Investment Advisor Representatives
September 07, 2009
The establishment of policies and procedures designed to monitor the outside business activities (“OBAs”) of supervised persons (i.e. officers, directors, partners, investment advisor representatives, and employees) should be part of every registered investment advisor firm’s written compliance programs. RIA Compliance Consultants, Inc. suggests that some type of “outside business activities form” be created and all supervised persons be required to complete the form on an annual basis and whenever changes are needed. A supervised person should disclose and seek approval of an outside business activity prior to engaging in the activity.
Now that we are into a new year, can you confirm your registered investment advisor and its advisor representatives were properly renewed for 2009? Every year there are always a handful of firms that fail to submit renewal fees through the IARD system in a timely fashion. Therefore, even if you think the renewal payment was sent in time, please make sure your firm retrieves the Final Renewal Statement and confirms it is renewed for calendar year 2009.
2009 IARD Annual Renewal and Form ADV Annual Amendment Requirements
October 15, 2008
Beginning Monday, November 10, 2008, investment advisor firms can access their 2009 Preliminary Renewal Statements via their IARD account. The Preliminary Renewal Statement must be paid, in full, by Friday, December 12, 2008. Because it takes approximately two days for payment to post to the IARD account, the funds should arrive no later than Wednesday, December 10, 2008, to ensure the money is posted to your IARD account by the 12th.
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.
