Annual updating amendment to form adv


In addition to the traditional updates which firms need to make on Form ADV, advisers will also need to be aware of the new regulations with respect to ADV Part 2 which may require the adviser to complete a new form ADV part 2 during the updating process.We are making special note of the updating requirement earlier than usual because of the new ADV 2 requirement.This session will also review the method of calculating “regulatory assets under management (RAUM),” examine the many changes to the ADV Part 1A that are effective with this year’s annual updating amendment and discuss how the SEC’s new custody guidance on first- and third-party transfers should be reflected on Form ADV.Finally, your instructors will provide guidance on correlating the information reported in Form ADV Part 1 to disclosures in Form ADV Part 2.Under SEC and state regulations, a registered investment advisory firm must file its annual amendment to Form ADV within 90 days of the end of its fiscal year.



In general the firm’s chief compliance officer will complete the update or work with an outside investment adviser compliance firm or law firm to complete the update.However, attendees can benefit by reviewing the Investment Advisers Act of 1940 and Form ADV to become familiar with structure and terms.Experienced firms are probably familiar with this process, while newer firms may be going through this process for the first time.Some of the key items of Form ADV which need to be updated include: New Regulations Regarding ADV Part 2 IA firms applying for SEC registration as of January 1, 2011 and existing firms filing Annual Updating Amendments are now required to use the new Part 2A, the “firm brochure.” In addition, the SEC has established the following compliance dates regarding Part 2B, the “brochure supplement:” SEC Compliance Dates for Delivery of Brochure Supplements to Clients Registered as of 12/31/10 with fiscal year ending 12/31/10 through 04/30/11, begin delivering by 07/31/11 Registered as of 12/31/10 with fiscal year ending after 04/30/11, deliver upon filing Annual Updating Amendment Registered as of 12/31/10 with fiscal year ending 12/31/10 through 04/30/11, deliver by 09/30/11 Registered as of 12/31/10 with fiscal year ending after 04/30/11, deliver within 60 days of filing Annual Updating Amendment *On December 28, 2010, the SEC extended the compliance dates by four months to provide certain IAs more time to deliver the brochure supplement.

Incorporating the New ADV Part 2 for State Registrations Because not all states have adopted the new ADV Part 2, state-registered IAs should check their state rules to confirm whether they need to use the new form or if they can continue to use the old form.

for guidance, and always be prepared to reach out to regulators for answers that may not be specifically addressed in documentation.