On Friday, March 13, 2020, the SEC issued an Order under Section 206A of the Investment Advisers Act of 1940 that is intended to provide relief for certain investment advisers who are impacted by COVID-19.
For the period between March 13, 2020 and April 30, 2020, the SEC is providing relief to registered investment advisers from the obligation to file an amendment to Form ADV or deliver its Form ADV Part 2 to existing clients if they meet certain conditions. In addition, during this same period, the SEC is providing relief to registered investment advisers to file Form PF if it meets these same conditions.
The conditions for relying on this relief require the investment adviser to establish:
- The registered investment adviser is unable to meet a filing deadline or delivery requirement due to circumstances related to current or potential effects of COVID-19;
- The investment adviser relying on this relief for Form ADV delays must promptly notify the SEC via email at IARDLive@sec.gov and disclose on its public website (or if it does not have a public website, promptly notifies its clients and/or private fund investors of) the following information:
- That it is relying on the SEC Order;
- It must provide a brief description of the reasons why it could not file or deliver its Form ADV on a timely basis; and
- The estimated date by which it expects to file or deliver the Form ADV Part 2.
- The investment adviser relying on this relief for Form PF delays must promptly notify the SEC via email at FormPF@sec.gov stating:
- That it is relying on the SEC Order;
- It must provide a brief description of the reasons why it could not file its Form PF on a timely basis; and
- The estimated date by which it expects to file the Form PF.
- The investment adviser must file the Form ADV or Form PF, as applicable, and delivers the brochure (or summary of material changes) and brochure supplement required by Rule 204-3(b)(2) and (b)(4) under the Advisers Act, as soon as practicable, but not later than 45 days after the original due date for filing or delivery, as applicable.
Should you have any questions about whether this relief is available to your firm or whether it makes sense to rely upon this relief, do not hesitate reaching out.