Home -> Law Blog Directory -> Corporate & Securities Law Blogs -> Jim Hamilton's World of Securities Regulation

Corporate & Securities Law

: Jim Hamilton's World of Securities Regulation

California To Mandate SEC's Newly Adopted Part 2 of Form ADV for IAs in 2011

By Jim Hamilton

Investment adviser applicants for licensing in California must include the SEC's newly adopted Part 2 of Form ADV with their applications submitted electronically through the IARD on or after January 1, 2011. Similarly, California-licensed investment advisers will need to include new Part 2 with their next annual renewal filing of Part 1 of Form ADV through the IARD on or after January 1, 2011 that is required within 90 days of their fiscal year-end. Investment advisers with a December 31, 2010 fiscal year-end, however, will have until March 31, 2011 to submit their annual renewal filing. Applicants and registrants filing amendments to Part 2 of Form ADV between October 12, 2010 (the effective date for new Part 2 in California) and January 1, 2011 may submit either current or new Part 2 but must begin submitting new Part 2 with their form ADV applications, renewals and amendments made on or after January 1, 2011.

New Part 2, adopted by SEC release on July 28, 2010, replaced the check box format of current Part 2 with a narrative brochure written in plain English to provide current and prospective clients with clearly written, meaningful, current disclosures of business practices, conflicts of interest and the backgrounds of investment advisers and their representatives. New Part 2 consists of a Part 2A on firm brochures, a Part 2A Appendix 1 on wrap fee program brochures and a Part 2B on brochure supplements.

For more information please see http://www.corp.ca.gov/

For the SEC Release please see http://www.sec.gov/rules/final/2010/ia-3060.pdf

Full post as published by Jim Hamilton's World of Securities Regulation on September 03, 2010 (boomark / email).