Lowenstein Sandler LLP
December 2, 2016 - New York
SEC Amends Form ADV And Recordkeeping Rules
by Scott H. Moss, Esq. and George Danenhauer, Esq.
On August 25, the Securities and Exchange Commission (the “SEC”) adopted a final rule making amendments to Form ADV providing for (i) the disclosure of additional information regarding advisers, including information about their separately managed accounts, (ii) a method for private fund adviser entities operating a single advisory business to register using a single Form ADV, and (iii) certain clarifying, technical, and other amendments to certain Form ADV items and instructions. The SEC also adopted amendments to the books and records rule under the Investment Advisers Act of 1940 (the “Advisers Act”).
The amendments adopted in the final rule are largely consistent with the proposed amendments, but with several modifications to address comments received. Compliance with the amendments adopted in the final rule is generally required on or after October 1, 2017. The amendments are summarized below.
Separately Managed Accounts
Advisers are required to report aggregate information about their separately managed accounts, which the SEC considers to include all advisory accounts other than those that are pooled investment vehicles (i.e., registered investment companies, business development companies, and pooled investment vehicles that are not registered). The specific separate account reporting requirements include amendments to Item 5 of Part 1A and Section 5 of Schedule D of Form ADV requiring aggregate-level information regarding separately managed accounts:
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