SEC Issues Compliance Extension to Part 2B of Form ADV and the Brochure Supplement

No Comment

On December 28, 2010, the Securities and Exchange Commission issued Release No. IA-3129, which among other things extended the compliance date for Part 2B of the Form ADV, the brochure supplement and rules related to delivery of the supplement for registered investment advisers under the Investment Advisers Act of 1940.

Background

Previously, the SEC adopted amendments to the Investment Advisers Act of 1940 to require registered investment advisers to provide clients with a brochure and brochure supplements written in plain English. The brochure contains information about the advisory firm, while the supplement contains information about the advisory personnel. Without the extension discussed below, most existing advisers would be required to deliver brochure supplements to new and prospective clients no later than March 31, 2011 and to existing clients no later than May 31, 2011. The extension only applies to the following:

Existing Registered Investment Advisers

Investment Advisers registered with the SEC as of December 31, 2010, and having a fiscal year ending on December 31, 2010 through April 30, 2011, now have until July 31, 2011 to begin delivering brochure supplements to new and prospective clients and until September 30, 2011 to deliver supplements to existing clients. The dates remain unchanged for those with fiscal years ending after April 30, 2011.

Newly-registered Investment Advisers

Advisers filing applications for registration from January 1, 2011 through April 30, 2011, have until May 1, 2011 to begin delivering brochure supplements to new and prospective clients and until July 1, 2011 to deliver supplements to existing clients. The dates remain unchanged for those filing applications for registration after April 30, 2011.

California Department of Corporations – Securities Regulation Division

The Securities Regulation Division of the California Department of Corporations also is extending the deadline to be consistent with the SEC.

Please contact our firm if you need assistance completing your brochure supplement, Form ADV, responding any regulatory issue, modifying your policies and procedures, assessing your compliance risks, ror any other regulatory or arbitration related legal advice at info@eklawpc.com.

Link: Investment Adviser Services

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