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SEC adopts new disclosure and recordkeeping requirements for investment advisers

Nathan J. Greene (Shearman & Sterling LLP, New York, New York, USA)

Journal of Investment Compliance

ISSN: 1528-5812

Article publication date: 2 May 2017

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Abstract

Purpose

To alert investment advisers to changes to be implemented to the Securities and Exchange Commission’s (SEC’s) Form ADV requirements as of October 1, 2017. Form ADV is the SEC’s principal investment adviser registration form.

Design/methodology/approach

Explains new public disclosure reporting requirements for investment adviser separately managed accounts (SMA) businesses, assesses the new “umbrella registration rules” that will govern how related advisers are treated by Form ADV, outlines key changes to Form ADV on a provision-by-provision basis, summarizes various other technical additions to Form ADV, and examines new performance reporting record-keeping requirements.

Findings

The Form ADV amendments are significant. Investment advisers should be preparing for compliance ahead of the October 2017 compliance date. Information retrieval processes will need to be reviewed and tested against the new disclosure rules. Firms will want to coordinate with their clients to minimize surprises when client data (albeit on an aggregated basis) is made public. Firms that operate under umbrella registrations should check their eligibility against the new rules.

Originality/value

Practical and informative guidance from experienced investment adviser attorneys that consolidates the key provisions of which investment advisers should be aware under new SEC disclosure and recordkeeping requirements.

Keywords

Citation

Greene, N.J. (2017), "SEC adopts new disclosure and recordkeeping requirements for investment advisers", Journal of Investment Compliance, Vol. 18 No. 1, pp. 19-24. https://doi.org/10.1108/JOIC-02-2017-0011

Publisher

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Emerald Publishing Limited

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