Questions on New Form ADV Addressed by SEC

This week the SEC’s Division of Investment Management (“IM”) released an Information Update regarding new Form ADV. As of October 1, 2017, the online system (IARD) for Form ADV filings will be modified to account for the changes to Form ADV as required by Advisers Act Release No. 4509, issued on August 25, 2016. Most of the changes come under Section 5 of Part 1A, Schedule D, and Section 7B for private funds.

The Staff has received multiple comments and questions regarding the implications of the new filing requirement for firms that file an “other-than-annual amendment” between October 1, 2017 and March 31, 2018. One issue raised, for instance, is that after October 1st a firm simply needing to update its executive team via an “other-than-annual amendment” would be forced to also update all the newly required sections in the new Form since the system will not accept incomplete filings.

To address this type of situation, the Staff released guidance to the industry that will allow firms to input “0” figures for the new questions within the Form, if they also update the Miscellaneous section of Schedule D to describe that the “0” values are only being submitted as placeholders until the firm’s next required annual updating amendment.

Advisers should prepare for the new Form ADV and its revised online filing experience beyond October 1, 2017.

View IM Information Update, “Information Update for Advisers Filing Certain Form ADV Amendments,” August 2017.