Registered investment advisers (RIAs) must file a Form ADV, otherwise known as the “Uniform Application for Investment Adviser Registration and Report Form by Exempt Reporting Advisers,” when first registering with the Securities and Exchange Commission (SEC) or state securities authorities. The Form ADV must also be updated and re-filed each year thereafter. Amendments to Form ADV and the Investment Advisers Act of 1940 Books and Records Rule (Rule 204-2) has improved the depth and quality of information that the SEC collects on RIAs to facilitate its risk-based examination program. A: The SEC adopted amendments to Form ADV and Rule 204-2 to provide investors and the SEC with a better understanding of the risk profile of each RIA and the overall industry. A: RIAs filing an initial Form ADV or an amendment to an existing Form ADV on or after October 1, 2017, will be required to provide responses to the adopted form revisions. A: RIAs are now required to disclose their firm's social media platforms in Section 1.I of Schedule D in Form ADV. This marks a significant change as previously RIAs only needed to list their firm’s websites. The approach to updating social media reporting is consistent with the current approach to updating websites. A: All publicly available, RIA controlled social media platforms, including Facebook, Twitter, LinkedIn, and others, can be inspected by the SEC. A: RIAs should ensure they archive and supervise their firm’s social media accounts. The SEC may request social media records for audits and examinations, so firms need to find efficient ways to retain and produce that content. A: Firms using a comprehensive archiving platform will be well-prepared to quickly locate and produce social media records alongside other frequently requested communication records such as emails or website content. This allows the SEC to gain a comprehensive understanding of RIA interactions across multiple content channels. A: RIAs are required to update their firm’s Form ADV if there have been any material changes to their business. For instance, when a firm’s social media information in Schedule D becomes materially inaccurate. Annual updates can be filed within 90 days after the end of a firm’s fiscal year. Otherwise, amendments can be filed outside of the annual updates. A: The SEC and most states require RIAs registered in their states to submit filings electronically through IARD. To file annual updating or other-than-annual amendments to a Form ADV, RIAs will need to log in to their IARD accounts. Once submitted, the status of their filing can be tracked online. Share this post! Our internal subject matter experts and our network of external industry experts are featured with insights into the technology and industry trends that affect your electronic communications compliance initiatives. Sign up to benefit from their deep understanding, tips and best practices regarding how your company can manage compliance risk while unlocking the business value of your communications data. Join the 6,500+ customers using Smarsh to drive their business forward.Form ADV Amendments: Frequently Asked Questions (FAQ) for RIAs
Q: What are the SEC’s amendments to Form ADV and Rule 204-2?
Q: When did these amendments come into effect?
Q: What is the new requirement for RIAs regarding social media disclosure?
Q: Which social media platforms are subject to inspection?
Q: How can RIAs prepare for these changes?
Q: What if the SEC asks for specific social media content?
Q: When should RIAs update their firm’s Form ADV?
Q: How can RIAs update Form ADVs with the SEC and State Securities Authorities?
Scalable for organizations of all sizes, the Smarsh platform provides customers with compliance built on confidence. It enables them to strategically future-proof as new communication channels are adopted, and to realize more insight and value from the data in their archive. Customers strengthen their compliance and e-discovery initiatives and benefit from the productive use of email, social media, mobile/text messaging, instant messaging and collaboration, web, and voice channels.
Smarsh serves a global client base that spans the top banks in North America and Europe, along with leading brokerage firms, insurers, and registered investment advisors. Smarsh also enables state and local government agencies to meet their public records and e-discovery requirements. For more information, visit www.smarsh.com.
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