Beginning Monday, November 5, 2007, investment advisor firms can access their 2008 Preliminary Renewal Statements via their IARD account. The Preliminary Renewal Statement must be paid, in full, by Monday, December 10, 2007. Because it takes approximately two days for payment to post to the IARD account, the funds should arrive no later than Thursday, December 6, 2007, to ensure the money is posted to your IARD account by the 10th.
Category Archives: Form ADV
SEC Files Cease-and-Desist Order Against an Investment Adviser for Failure to Disclose Referral Fees
September 26, 2007
On September 25, 2007, the U.S. Securities and Exchange Commission (“SEC”) filed a cease-and-desist order against an investment adviser for its failure to disclose that the investment adviser’s president received payments from a security issuer that the investment adviser recommended to its clients.
SEC Issues Cease and Desist Proceedings for Failing to Allow SEC Staff to Examine Business Records
September 25, 2007
On September 24, the U.S. Securities & Exchange Commission (SEC) issued an order instituting administrative and cease-and-desist proceedings against a registered investment adviser for refusing to produce or allow for the inspection of the firm’s advisory business.
SEC Issues Cease-and-Desist Order for Incomplete Disclosure of a Conflict of Interest
September 22, 2007
Once again the U.S. Securities and Exchange Commission (“SEC”) issued a cease-and-desist order against a registered investment adviser for incomplete disclosure of a conflict of interest in violation of Section 207 of the Investment Advisers Act of 1940.
Earlier this month, the California Department of Corporations announced proposed changes to rules regulating investment advisers registered in California. According to the release, the objective in proposing the amendments is to increase uniformity with the model rules suggested by the North American Securities Administrators Association (NASAA), rules already in effect in other states, and rules established by the Securities and Exchange Commission (SEC). California is giving the public an opportunity to comment on the proposed changes. The time period for comment ends on October 30, 2007.
Attention Investment Advisers Registered in Illinois
August 30, 2007
Recently the Illinois Securities Department has been requesting investment advisors registered with their office provide additional information regarding disclosures made in the firm’s Form ADV. Requests for additional information have been made not only during the initial registration process but also in response to updates submitted by registered investment advisors with active registration. Additional information required has included more thorough descriptions of the services and fee arrangements offered by firms, copies of agreements entered into with third-party investment advisors, copies of privacy policy notices, and copies of Schedule H brochures used by the firm even when the wrap-fee program is sponsored by another firm. Firms registered in Illinois should be prepared to provide the additional information and documentation promptly to the Department when requested. We support the Department’s decision to ensure firms are fully disclosing all pertinent information and can substantiate compliance with investment advisory rules and regulations.
Minnesota, North Dakota, and South Dakota Require Use of IARD to Post Form ADV Part II
July 13, 2007
RIA Compliance Consultants, Inc. continues to follow the implementation of Form ADV Part II functionality on IARD, and we have learned that three more states require state registered investment advisors to post the Form ADV Part II on IARD.
Proper Fee Disclosures in Form ADV
July 10, 2007
According to a recent survey by State Street Corp.’s investment management arm and Knowledge@Wharton, only 43% of investors said they understood their registered investment adviser’s fee structure “completely” or “fairly well” (retrieved online from InvestmentNews). The results from this study reminded us of a September 13, 2005 NASAA news release. According to the news release, one of the most common deficiencies found during examinations of state-registered investment advisors was inaccurate disclosures in the Form ADV. Our own experience supports the results of both of these studies, and we are not surprised that many investors don’t understand how fees are earned by registered investment advisors.
Form ADV Released in Interactive PDF Format
June 22, 2007
The North American Securities Administrators Association (“NASAA”) recently released an interative PDF version of the Form ADV including the Part II and Schedule F for use by registered investment advisors. If you’d like to download this new interactive PDF version of the Form ADV, click here to link to the applicable NASAA’s webpage. In light of this new offering and the recent development allowing investment advisor applicants to submit the Form ADV Part II and Schedule F online via the IARD system, a completely paperless registration of state investment advisors doesn’t seem too far off in the future.
Attention State Registered Investment Advisors – Deadline to Post Form ADV Part II on IARD
May 29, 2007
In a previous blog this month, RIA Compliance Consultants, Inc., told you about the IARD/Web CRD’s new functionality allowing registered investment advisors to post their Form ADV Part II online. According to an e-mail sent from the California Securities Regulation Division, any amendments to Form ADV Part II after April 24 should now be posted directly on the IARD system. All California registered investment advisors must post their current Form ADV Part II directly with IARD within 60 days after April 24. The Virginia Division of Securities and Retail Franchising also issued an e-mail, dated April 26, 2007, requiring state registered firms to post their Form ADV Part II online as well.
