Tonkon

Legal Updates & Alerts

SEC Extends Deadline for Brochure Supplements for Certain RIAs

January 12, 2011
By Craig A. Foster

As discussed in a previous Tonkon Tip, the SEC recently amended the requirements of Form ADV Part 2 to require registered investment advisers to provide clients with a "brochure" under Part 2A of Form ADV and "brochure supplements" under Part 2B of Form ADV. The brochure contains information about the advisory firm, and the brochure supplements contain information about the firm's supervised persons who provide investment advice. Both the brochure and brochure supplements must be written in plain English and use a completely narrative-style format.

On December 28, 2010, the SEC extended the compliance dates for delivery of the brochure supplements by four months for certain investment advisers. Please note that the SEC did not extend the compliance dates for filing and delivery of the firm brochure. Therefore, an adviser wishing to include the brochure supplement information in the firm's brochure without amending and redistributing the brochure should not take advantage of the deadline extension.

The new compliance dates are as follows:

Currently Registered Advisers. All advisers (a) registered with the SEC as of December 31, 2010 and (b) having fiscal years ending on December 31, 2010 through April 30, 2011 have until July 31, 2011 to begin delivering brochure supplements to new and prospective clients. Such advisers have until September 30, 2011 to deliver brochure supplements to existing clients. Compliance dates for currently registered advisers with fiscal years ending after April 30, 2011 have not changed.

Newly Registered Advisers. Advisers applying for registration with the SEC between January 1, 2011 and April 30, 2011 have until May 1, 2011 to begin delivering brochure supplements to new and prospective clients. Such advisers have until July 1, 2011 to deliver brochure supplements to existing clients. Compliance dates for advisers applying for registration after April 30, 2011 have not changed.

For further questions about the new brochure supplement compliance dates, please contact our Financial Services practice group.