SEC Issues Additional Guidance – Form ADV Updates

By August 17, 2017New in Compliance, SEC

August 17, 2017:  Earlier this week, the Division of Investment Management of the U.S. Securities and Exchange Commission (“SEC”) issued IM Information Update 2017-06, directed to investment advisers filing Form ADV updates.  As widely reported, in August 2016, the Commission adopted amendments to Form ADV with a compliance date of October 1, 2017.[1] As of that date, any adviser filing an initial Form ADV or an amendment to an existing Form ADV will be required to provide responses to the form revisions adopted in the rulemaking.

The Information Update clears up confusion about Form ADV amendments after Oct. 1, 2017, specifically as it relates to certain disclosure items that only require annual updates. For example, advisers must respond to new or amended questions in Item 5 and the related Schedule D sections that are typically reserved for annual filers only. In certain cases, this information may not be readily available because previously it was not required to be reported on Form ADV. The IARD system does not allow an adviser to file an incomplete Form ADV.

To address this type of situation, the Division of Investment Management will allow firms to input ‘0’ figures for the new questions within Form ADV if the filer also updates the Miscellaneous section of Schedule D to describe that the ‘0’ values are only being submitted as placeholders until the filer’s next required annual updating amendment. This strategy allows advisers with a December year-end to buy time until their annual updating amendment is filed in the first quarter of 2018.

Follow this link to review IM Information Update 2017-06 in full.

August 17, 2017

prepared by Horrigan Resources, Ltd.

(724) 934-0129

Not customized advice. Not legal advice.


[1] See Advisers Act Release No. 4509, issued on Aug. 25, 2016


Author admin

More posts by admin