|
Investment Advisers - First Quarter 2005
Annual Updating
Amendment
Within 90 days after your fiscal year-end SEC registered investment
adviser firms will be required to file an annual updating amendment
to your Form ADV Part 1 on the IARD system to update the firm's
assets under management. This filing is due March 31st. Before the
filing can be submitted through Web IARD, the fee must be deposited
into the firm's daily account. The filing fees for the annual update
are:
|
Assets Under Management
|
Annual Updating Fee
|
|
More than $100 million
|
$550
|
|
$25 million to $100 million
|
$400
|
|
Less than $25 million
|
$100
|
The firms Form ADV should
reflect current information. The firm should review their current
business for any changes that have occurred during the past year,
i.e., any new programs being offered or programs no longer being
used, employee status update, or review of client base to determine
if the firm should notice file (or register) in additional states.
Additionally the firms Compliance Manual may need to be updated
to reflect these business updates.
Codes of Ethics
The SEC adopted a new rule that requires registered investment advisers
to adopt codes of ethics. The rule requires an adviser's code of
ethics to set forth standards of conduct and require compliance
with federal securities laws. Codes of ethics must also address
personal trading: they must require advisers' personnel to report
their personal securities holdings and transactions, including those
in affiliated mutual funds, and must require personnel to obtain
pre-approval of certain investments.
The SEC has amended the recordkeeping rule to require advisers to
keep copies of their codes of ethics and records relating to the
code. These records would include records of violations of the code
and actions taken as a result of the violations, and copies of the
supervised persons' written acknowledgement of receipt of the code.
Additionally the firm is required to keep a record of the names
of the access persons, the holdings and transaction reports made
by access persons, and records of decisions approving access persons'
acquisition of securities in IPO's and limited offerings.
The SEC has amended the client disclosure requirements under Part
II of Form ADV to include a description of their codes of ethics.
Since many advisory firms access persons use their year-end brokerage
statements to compile their securities holding reports the SEC has
extended the compliance date for rule 204A-1 from January 7, 2005
to February 1, 2005.
Form ADV amendments
Amendments in Form ADV Part 1 will require advisers to "private
funds" to identify themselves as hedge fund advisers. The adviser
will be required to disclose information about the fund, including
its name and the name of its manager or general partner. The IARD
filing system will incorporate the Form ADV amendments on March
8, 2005. This amendment can be filed in conjunction with your regular
annual updating amendment, rather than filing an additional amendment.
|
