SEC Staff Updates Form ADV FAQs

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In August 2016, the SEC adopted amendments to Form ADV Part 1A, pursuant to Final Rule Release No. IA-4509 (Form ADV and Investment Advisers Act Rules). These changes are designed to provide additional information related to an advisers’ separately managed account business, private fund adviser entities and other important identifying data.  The new Form is to be implemented on October 1, 2017.

In response to questions and concerns raised by the financial services industry, the staff of the SEC’s Division of Investment Management has issued an updated “Frequently Asked Questions on Form ADV and IARD.”  Included is a red-line version of the instructions used for Form ADV Part 1.

Notably, the SEC has also added FAQs related to:

  • Form ADV Item 1.I – related to social media platforms
  • Form ADV Item 1.J – related to the Chief Compliance Officer
  • Form ADV Item 5.D – related to Client data
  • Form ADV Item 5.K – related to separately managed accounts
  • Form ADV Item 7.B – related to advisers of private funds
  • Form ADV Schedule R – related to “relying advisers” for umbrella registration

Of particular interest, addressed in the FAQs for Schedule R, the staff is withdrawing its response from Question 4 of the Staff’s January 12, 2012, letter to the American Bar Association Business Law Section (“2012 ABA Letter”). This results from the Commission’s amendments to Form ADV, which codify umbrella registration for certain advisers to private funds, making this response no longer applicable.

It is estimated that the gathering and completion of new data required in Form ADV Part 1A will be a complex process.  It is important for firms to familiarize themselves with the new regulatory requirements and commence the process of determining how best to gather this information.  Jacko Law Group, PC is here to help! If you have questions related to the changes in Form ADV Part 1A or need guidance on how to prepare, please contact us at (619) 298-2880, or email info@jackolg.com.  Thank you.

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Filed under Investment Advisers, SEC, Securities and Exchange Commission

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