Sep 06, 2016
From the Financial Reporting Network
The SEC recently adopted amendments to rules under the Investment Advisers Act of 1940 (the Advisers Act) and to Form ADV to enhance the reporting and disclosure of information by investment advisers. The amendments require investment advisers to provide more specific information about the separately managed accounts they advise, provide a simplified umbrella registration method for private fund advisers that operate a single advisory business through multiple legal entities, and require additional information about other aspects of their advisory business to be reported in Form ADV.
The SEC also amended Rule 204-2 of the Advisers Act to require investment advisers to maintain supporting documentation of the calculation of performance information distributed to any person and to maintain written communications about performance information of any or all managed accounts or securities recommendations.
The amendments will become effective 60 days after publication in the Federal Register. Investment advisers are required to comply with the amendments and to use the amended Form ADV beginning October 1, 2017.