We use cookies to give you the best online experience. By using our website you agree to our use of cookies in accordance with our cookie policy. Learn more here.Close Me
The SEC recently issued two new FAQs clarifying certain
reporting requirements in Form ADV. Highlights of the FAQs
include:
Item 1.O of Form ADV requires an adviser to indicate whether it
had $1 billion or more in total assets on the adviser's balance
sheet as of the last day of the adviser's most recent fiscal
year end. "Assets" refer to the adviser's total
assets, not the assets managed on behalf of clients. Therefore, for
example, an adviser that has $5 billion in regulatory assets under
management, but only $300 million in total assets on its balance
sheet for its most recent fiscal year end would answer
"no" to Item 1.O.
An investment adviser registered with the SEC that files an
annual updating amendment reporting that the adviser is not
eligible for SEC registration must withdraw from registration
within 180 days of its fiscal year end, unless the adviser
then is eligible for SEC registration. Therefore, if a firm is
registered with the SEC and reports having regulatory assets under
management of less than $90 million on its annual updating
amendment, but subsequently obtains $90 million or more in
regulatory assets under management during the 180 day period, the
adviser may amend Form ADV and check Item 2.A(1) to remain
SEC-registered.
The content of this article is intended to provide a general
guide to the subject matter. Specialist advice should be sought
about your specific circumstances.
To print this article, all you need is to be registered on Mondaq.com.
Click to Login as an existing user or Register so you can print this article.
Recent statements by securities regulators emphasize that financial firms need to move beyond a "culture of compliance" to ensure that investors have a better understanding of risk and the investments they are purchasing.
On March 22, 2013, ISDA published the March 2013 DF Protocol, and on May 20, 2013, ISDA Amend became available to accept Questionnaires under the new Protocol.
A recent FINRA disciplinary action sends a strong message to broker-dealers that the development of their compliance systems—particularly with respect to email review and retention—must keep pace with the growth of their businesses.
At its Twenty-Ninth Meeting to consider rulemaking under the Dodd-Frank Wall Street Reform and Consumer Protection Act of 2012 (Dodd-Frank) on May 16, 2013, the U.S. Commodities Futures Trading Commission (CFTC) adopted three final rules that make significant progress towards completing its rulemaking agenda.
