On August 25, 2016, the Securities and Exchange Commission (the “SEC” or the “Commission”) adopted amendments to various rules under the Investment Advisers Act of 1940 (the “Act”). The amendments will be effective 60 days after the date of publication in the Federal Register, but investment advisers are expected to comply with the amendments after October 1, 2017. In general, the amendments will cause investment advisers to provide more specific and detailed information about their advisory business, which is expected to be more useful to clients as well as to assist the SEC in its risk-monitoring and examination programs.
Most of the amendments relate to providing more information about separately managed accounts (which previously has not been a focus under the Act). The final amendments are very similar to the proposed amendments issued by the SEC in May 2015, with certain improvements and changes made due to the Commission’s consideration of comments submitted by various commenters.
This alert summarizes the key amendments to Form ADV and the Act. Read the full article here.