With IARD/Web CRD Release 9.0, the NASD implemented several changes that went into effect on April 23, 2007. The most significant of these changes is the ability for registered investment advisor firms to post their Form ADV Part II online. This new update has not received the widespread media coverage that the release of the new Form ADV Part II will certainly see, but its implementation is significant. With the new functionality, the general public is now able to view registered investment advisor firm disclosure brochures through the Investment Adviser Public Disclosure site (www.adviserinfo.sec.gov).
Category Archives: Form ADV
Annual Amendment Filings
May 11, 2007
Did your firm file its Form ADV Part 1 Annual Amendment by March 30? If your registered investment advisor firm’s fiscal year end was December 31, the answer to this question should be a definite yes. If your investment advisor firm has not yet completed the Annual Amendment, give us a call today so we can help you complete this important requirement. It is important to note some investment advisor firms make the mistake of filing an “other than Annual Amendment filing” when attempting to fulfill this duty. In order to meet the SEC’s requirement, an “Annual Amendment” must be filed within 90 days after a firm’s fiscal year end. If your investment advisor firm missed the 90 day deadline, the filing should be made as soon as possible.
Is It Time to Register with the SEC?
February 02, 2007
Because many firms have a December 31 fiscal year-end, it is likely that your investment advisor firm is currently working on its Form ADV Part 1 Annual Amendment. The Annual Amendment must be submitted through the IARD within ninety (90) days after an advisor’s fiscal year-end. While there are other criteria for registering with the SEC, by far the most common test for SEC registration is a firm’s assets under management. Therefore, for a large majority of firms, when completing the Annual Amendment, an advisor firm must pay close attention to updating the firm’s assets under management. Regulators, both at the federal and state levels, have stated an advisor’s assets under management must be current as on the firm’s most recently completed fiscal year.
2007 IARD Annual Renewal and Form ADV Annual Amendment Requirements
November 06, 2006
Beginning today, Monday November 6, 2006, investment advisor firms can access their 2007 Preliminary Renewal Statements via their IARD account. The Preliminary Renewal Statement must be paid, in full, by Friday, December 8, 2006. Because it takes approximately two days for payment to post to the IARD account, the funds should arrive no later than Wednesday, December 6, 2006, to ensure the money is posted to your IARD account by the 8th. Click here for detailed instructions, prepared by RIA Compliance Consultants, to fund your IARD account.
Future SEC Initiatives: IA/BD Study, Books and Records, New Part II, Soft-Dollar and Hedge Funds
October 25, 2006
In a recent speech, Andrew J. Donohue, Director of the SEC’s Division of Investment Management, outlined several future initiatives for the Division of Investment Management. These initiatives include the SEC’s Investment Adviser/Broker-Dealer study which aims to analyze current industry and regulatory practices and also examine the levels of protection afforded to investors under both the Securities Exchange Act and the Investment Advisers Act. The next initiative Mr. Donohue discussed is a potential reformulation of the SEC’s books and records requirements for investment advisors. This should be welcome news as hopefully the SEC will factor the many technological changes that have occurred over the last 40 years and establish practical books and records requirements.
The establishment of sound policies and procedures aimed at monitoring the outside activities of its supervised persons (i.e. the advisor’s officers, directors, partners, investment advisor representatives, and employees) should be part of any firm’s written compliance programs. It is suggested 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. Besides the human resources reasons for monitoring outside business activities, there are two important regulatory reasons: (a) Form ADV disclosure purposes, and (b) Form U4 disclosure purposes.
2007 IARD Annual Renewal and Form ADV Annual Amendment Requirements
October 10, 2006
Beginning Monday, November 6, 2006, investment advisor firms can access their 2007 Preliminary Renewal Statements via their IARD account. The Preliminary Renewal Statement must be paid, in full, by Friday, December 8, 2006. Because it takes approximately two days for payment to post to the IARD account, the funds should arrive no later than Wednesday, December 6, 2006, to ensure the money is posted to your IARD account by the 8th.
End of Year Compliance Items – Part 2
January 02, 2006
This is the second entry in a series of blogs RIA Compliance Consultants is posting concerning annual compliance requirements and end of year filings. While we are trying to touch upon the items that all advisor firms are required to complete, it is important that you refer to your regulatory authority to ensure you have an all inclusive list of the requirements your firm must meet. If your firm has questions or concerns about one of the items listed in this entry, please give us a call to discuss how we can help your firm meet its regulatory obligations.
END OF YEAR COMPLIANCE – Part 1
December 21, 2005
Recently, we have posted several blogs about the IARD renewal season. In addition to paying renewal fees each year, there are a number of other annual requirements that must be completed by investment advisor firms. The end of the calendar year is a good time to discuss some of those different compliance requirements. This entry is the first in a series of blogs that we will post discussing some of the annual requirements.
Disciplinary History Disclosures
July 29, 2005
The SEC and state regulators require registered investment advisor firms to disclose disciplinary history on the Form ADV. Specifically Item 11 on the Form ADV Part I requires certain criminal, regulatory, and civil proceedings to be disclosed. SEC advisor firms may limit their disclosure of any event to ten years following the date of the event’s resolution. Depending on the question, state registered firms must disclose events that took place longer than ten years ago. Item 11 not only requires the disclosure of settled events, but it also requires events that are currently on-going to be disclosed. State registered firms are held to an even higher standard of disclosure as they are required to disclose certain financial (such as judgments and liens), arbitration and additional civil proceedings.
