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SEC Adopts Revisions to Form ADV and Mandates Electronic Filings in 2001
Washington, DC, September 14, 2000 - In anticipation of the implementation of the Investment Adviser Registration Depository (IARD), the Securities and Exchange Commission has adopted amendments to Part 1 of Form ADV as well as related rules under the Investment Advisers Act of 1940.
New Part 1A of Form ADV as adopted is substantially similar to the version that was proposed for comment. The Institute submitted comments on the proposed version.
Under the rules adopted by the SEC, unless an adviser qualifies for a hardship exemption from using the IARD, all federally-registered investment advisers must transition to electronic filing by submitting a new Part 1 of Form ADV to the SEC via the IARD during the first four months of 2001. The SEC expects the IARD information to be publicly available through the Internet in mid-2001. The public will not, however, be able to access social security numbers, private residence information, and "contact employee" information.
The revisions to Part 1 of the Form and the transition procedures and schedule for converting to the IARD are summarized below. A copy of the SEC's Release, which includes the paper version of the revised Part 1 of Form ADV, is attached.
Transitioning to the IARD
Each adviser registered with the SEC on January 1, 2001 must file new Part 1 of Form ADV with the SEC through the IARD in accordance with the SEC's transition schedule. In addition, all amendments filed to the form subsequent to an adviser transitioning to the IARD must be filed electronically. After April 2001, the SEC will no longer accept paper filings of Form ADV, unless the adviser has been granted a hardship exemption.
Part II of Form ADV
The SEC has deferred adoption of amendments to Part II of Form ADV, the disclosure portion of the Form. Until such amendments are adopted, advisers are required to continue to deliver the existing Part II of the Form (or a brochure containing the same information) to prospective clients and annually offer them to clients in accordance with the requirements of the brochure rule (Rule 204-3 under the Advisers Act). Advisers are not required to file Part II of Form ADV with the SEC until the IARD is able to accept advisers' brochures electronically. In the meantime, advisers are required to maintain an updated copy of Part II (or their brochure) in their files and provide it to the SEC upon request.