Annual Compliance Reviews
All investment advisers registered with the Securities and Exchange Commission ("SEC") are required to review their compliance policies and procedures at least annually (and best practice is for any investment adviser, whether SEC registered or not, to engage in such a review). Many advisers traditionally conduct this review in March of each year. Registered advisers should commence their annual reviews promptly and document the review process.
Form ADV - Annual Amendment Due by April 1st; Delivery of Updated ADVs to Clients
Form ADV for registered advisers (Parts 1 and 2A) and Exempt Reporting Advisers (relevant portions of Part 1), must be updated by April 1, 2013 through the Investment Adviser Registration Depository (IARD) website (www.iard.com). In order to get credit for the filing, please select "annual amendment" when updating the form. Failure to update Form ADV could lead to registration or status as an Exempt Reporting Adviser being revoked.
In addition, registered investment advisers must deliver updated brochures (Part 2A) and brochure supplements (Part 2B) to all clients within 120 days after the end of the adviser's fiscal year.
Investment advisers registered with the SEC who manage private funds and have at least $150m in regulatory assets under management attributable to "private fund assets" (as defined in the Form PF) are required to file a Form PF through the IARD website (www.iard.com).
Large Hedge Fund Advisers (advisers with over $1.5 billion in hedge fund assets under management) must file quarterly within 60 calendar days after the end of each quarter, or by March 1, 2013. All other advisers must file annually within 120 days of the end of their fiscal year, or by April 30, 2013 for advisers with a December 31 fiscal year end. Advisers are cautioned to carefully review the definitions on the instructions for Form PF when determining the amount of "private funds assets" and "hedge fund assets."
Advisers who have not yet started preparing their Form PF filings are encouraged to start this process promptly.
Registered Advisers to Funds - Delivery of Audited Financial Statements
Registered investment advisers relying on the "audited financials exception" to the account statement delivery and independent verification requirements of the Custody Rule must deliver such audited financial statements for their fund to investors within 120 days of the end of the fund's fiscal year. Please note that funds which are 4.7 pools for CFTC purposes have a 90 day deadline under CFTC rules (see below). The financial statements must be audited by an independent public accountant that is registered with, and subject to regular inspection by, the...