SEC-registered investment advisers with a fiscal year ending December 31 are required to file an annual amendment with the SEC to update their Form ADV by March 31, 2019. With this year’s deadline taking place on a Sunday it’s even more important to stay on top of the upcoming due date and related tasks to ensure a timely filing.
What You Should Know
IARD will be Open on Sunday, March 31 for Filing
Although the March 31, 2019 due date is on a Sunday, there is no change to the deadline as the Investment Adviser Registration Depository (“IARD”) will be open. The IARD system is generally available Monday through Friday from 5:00 a.m. to 11:00 p.m. ET. The IARD system will also be open on Saturday, March 30, 2019, from 8:00 a.m. to 6 p.m. ET, and on Sunday, March 31, 2019, from 10:00 a.m. to 6:00 p.m. ET. This will allow advisers to file their Form ADV amendments throughout the weekend.
Review Form ADV Part 2A
Last summer, the Office of Compliance Inspections and Examinations (“OCIE”) issued a risk alert regarding the most common deficiencies that the staff has cited in recent examinations of advisers’ compliance with their best execution obligations under the Investment Advisers Act of 1940 (the “Advisers Act”). Following this alert, ACA recommended that advisers review their Form ADV Part 2As to ensure that the disclosure contained in response to Item 12 accurately describes the adviser’s brokerage activities, the best execution processes followed, and describes the use of client commissions to purchase services.
Be Aware of SMA Disclosures
Results from the 2018 Compliance Testing Survey revealed that the majority of participating firms when asked, felt the most onerous part of preparing the new Form ADV were the disclosures relating to separately managed accounts (SMAs). Most specifically, increased SMA reporting of derivatives and borrowing (37 percent), determining the classification of investment types held in SMAs (21 percent), determining what is an SMA for purposes of Form ADV (13 percent), and disclosures relating to SMA custodians (7 percent).
How ACA Can Help
This year ACA is supporting nearly 700 firms in completing their annual ADV amendments by the filing deadline. ACA’s high-touch service and in-depth knowledge of the filing process provides a smooth and efficient experience for firms.
To assist clients with Form ADV filings, ACA prepares and files Entitlement Forms with FINRA (if necessary), prepares and files Part 1A and Part 2A on the IARD, prepares Part 2B, and helps register investment adviser representatives. All drafts are submitted to clients prior to filing for review and approval.
To request support with the upcoming filing deadline, please email Elaine Vincent at email@example.com.
- 2019 Regulatory Filings Calendar: ACA Compliance Group has created a calendar to help you stay on track with your regulatory filings. Request our Regulatory Filings Calendar to view key regulatory filing due dates and holidays at a glance.
- Compliance Corner Q1–2019: ACA Compliance Group's Danielle Joseph and Anne Wallace contributed the article, Regulatory Filings and Other Considerations That Hedge Fund Managers Should Note in the Coming Quarter, to the January 24, 2019 Hedge Fund Law Report
- Filings Consultation and Preparation: ACA Compliance Group specializes in assisting advisers with filings through services such as Form PF consulting and review as well as preparation and filing of Form(s) 13F, 13H, Schedule 13G, the CPO-PQR, and Form ADV. Additionally, ACA offers Form PF administration services through the Analysis and Review Center (ARC) located in Pittsburgh.
- Regulatory Technology for In-House Regulatory Filing: ACA Regulatory Reporting (ACA RR) is a centralized platform for aggregating, reviewing, and submitting regulatory filings including Form PF, Form 13F, AIFMD Annex IV, and CPO-PQR.
For More Information
If you would like to learn more about ACA’s IARD administration assistance, please contact us here or connect with your ACA consultant.