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SEC Updates to Form ADV FAQs

On June 12, the staff of the Securities and Exchange Commission’s Division of Investment Management updated its Frequently Asked Questions on Form ADV and IARD. Much of the additional guidance relates to amendments to Part 1A of Form ADV made by the SEC in 2016. Investment advisers will need to comply with these amendments beginning on October 1.

The staff revised an FAQ relating to Item 1.O, and added FAQs relating to Items 1.I, 1.J, 5.D, 5.K, 7.B and Schedule R. Notably, the staff added six FAQs relating to new Item 5.K, which requires reporting related to separately managed accounts. Additionally, in an FAQ relating to new Schedule R, the staff provided that it is withdrawing its response to Question 4 of its January 18, 2012, letter addressed to the American Bar Association, which stated that the staff would not recommend enforcement action against an investment adviser that files a single Form ADV on behalf of itself and each “relying adviser” under certain circumstances (Umbrella Registration). This response has been withdrawn, as it has been superseded by the SEC’s Form ADV amendments, which codify Umbrella Registration for certain advisers to private funds.

The updated Form ADV FAQs are available here.

©2017 Katten Muchin Rosenman LLP


About this Author

David Y. Dickstein, Financial Services Lawyer, Katten muchin law firm

David Dickstein represents broker-dealers, investment advisers, investment companies and hedge funds in connection with a variety of regulatory, compliance and operational matters. David regularly counsels investment advisers on registration and regulatory matters, such as the need for registration, conflict of interest disclosures, soft dollars and best execution, firm advertising and marketing, federal and state pay-to-play matters, trade allocations and personal trading. He also advises broker-dealers on registration and ongoing compliance matters, mutual fund supermarkets...