June 24, 2015

SEC Proposes Amendments to Form ADV and Investment Advisers Act Rules

On May 20, 2015, the Securities and Exchange Commission (“SEC”) issued a release proposing amendments to Form ADV and to certain rules under the Investment Advisers Act of 1940 (the “Advisers Act”). The proposed amendments are relevant to all investment advisers, including investment advisers to hedge funds and private funds and those not currently managing private funds. In a companion release, the SEC also proposed new rules and forms and amendments to existing rules and forms for registered investment companies.  The proposals set forth in these releases are intended to modernize and enhance disclosures for the investment management industry. Additionally, the proposals would further the SEC’s use of technology in its efforts to monitor risks as the primary regulator of registered investment advisers and registered investment companies.

The SEC also indicated that these proposals are a result of the growth of new and increasingly complex investment products and strategies. Additionally, the proposals seek to take advantage of technological advances in data collection and analysis.

The proposals seek, with respect to investment advisers, to amend Form ADV to (1) require investment advisers to provide information related to their separately managed account (“SMA”) business; (2) enable private fund investment advisers to file an “umbrella registration” for separate investment advisers that operate as a single investment advisory business; and (3) make certain clarifying, technical and other amendments. Additionally, the proposals seek to amend Rule 204-2 under the Advisers Act, the books and records rule, and to make various technical and clarifying amendments to other rules under the Advisers Act.

Read "SEC Proposes Amendments to Form ADV and Investment Advisers Act Rules."

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