Many advisers will be registering with the Securities and Exchange Commission for the first time in the coming months. Therefore, it is important to fully understand your new reporting obligations. Investment advisers already registered with the SEC will have to get used to significant changed to the reporting requirements.
To begin, this post covers some of the practical issues associated with registration.
The Initial Filing
Registration with the SEC is initially accomplished by filing Form ADV. Form ADV is the uniform form used by investment advisers to register with the SEC.
Form ADV is filed by using the adviser electronic filing system (IARD), which is managed by FINRA. In order to file the form, advisors will first need to open an IARD user account.
Once the form is filed, the SEC will review it for completeness and take other steps. The SEC must approve the registration or begin proceedings to deny the registration in 45 days.
Continuing Obligations
Following the initial filing, investment advisers will be required to amend their reports on Form ADV: (i) at least annually, within 90 days of the end of the adviser‘s fiscal year; and (ii) more frequently, if required by the instructions to Form ADV.
General Instruction 4 to Form ADV requires advisers to promptly update their identification Information, form of organization), and disciplinary information if they become inaccurate in any way, and to update control persons information if it becomes materially inaccurate.
How We Can Help Ensure Compliance
The regulatory burdens placed on hedge funds and private equity groups have grown dramatically, leaving many companies overwhelmed by compliance issues. You should consult with experienced counsel to meet the new rules.
With the March 2012 deadline fast approaching, advisers to hedge and private equity funds should be beginning the registration process in earnest. If you are concerned about your company’s progress, please contact us to find out how we can help.
Eckerle Law offers a highest-quality and cost-effective alternative to the traditional law firm model for a wide variety of transactional and regulatory matters serving all your business law needs. Our experienced attorneys also provide a full range of compliance services for investment advisers, offering compliance tools that are tailored to fit the ever changing regulatory landscape as well as your business needs.
If your company would like to strengthen its business practices, please contact us today so we can leverage our experience to create real-life business and legal solutions to help your business thrive.