Navigating Form ADV with Ease – Reminders for Your Annual Filing

Do you know what time it is? That’s right, it’s time to begin your ADV updates once again! For those firms with a fiscal year-end of December 31, it is time to start addressing the required Annual Updating Amendment of Form ADV. In accordance with federal and state securities regulations, both SEC and State Registered Advisers must file the required Annual Updating Amendment of Form ADV within 90 days of their fiscal year-end.

This means advisers with a fiscal year-end of December 31, 2024, must file the Amendment by or before March 31, 2025.

During this process, it is important to identify any business changes, especially as they relate to advisory services, fees, internal processes, and conflicts of interest, so that appropriate disclosures can be made to your brochures. Accurate and thorough disclosures in Form ADV empower clients to make well-informed decisions about starting or maintaining advisory relationships with your firm. To support you in this critical process, here are key reminders and practical tips to simplify your Form ADV updates.

 

Step 1: Review Your Current Form ADV & Gather Required Information

Locate your firm’s existing Form ADV and review for accuracy and completeness. Spend time gathering data needed to disclose information about your advisory business, such as the amount of regulatory assets under management, number of clients and asset types, compensation arrangements, and information related to your advisory services.

 

Step 2: Update your ADV as Needed

Ensure all parts of your ADV are updated as needed. For more detailed information on updating your ADV, refer to our Risk Management Update, Navigating the Importance of Form ADV Disclosures.

 

Step 3: Conduct Internal Review

Once you have reviewed and updated your Form ADV, verify that all updates are consistent across Parts 1, 2, and 3. Consider having a compliance officer or legal counsel review the changes for accuracy and consistency.

 

Step 4: Log in to the IARD System & File the Amendment

Access the Investment Adviser Registration Depository (IARD) system using your firm’s account credentials. Confirm the applicable filing fee based on your firm’s regulatory jurisdiction, and ensure your Flex Funding Account[1] has adequate funds to pay the necessary filing fees.

Submit the updated Form ADV through the IARD system. Ensure you meet the deadline (within 90 days of the end of your fiscal year).

 

Step 5: Distribute Updated Brochures

Deliver the updated Form ADV Part 2A to all clients, or, provide a summary of material changes with an offer to deliver the full Part 2A, along with contact information as to where the full Part 2A may be obtained.

 

Step 6: Monitor Confirmation & Maintain Records

Confirm that the filing was accepted through IARD. Retain copies of the filed Form ADV, related correspondence, and supporting documents in accordance with recordkeeping requirements.

 

Conclusion

Navigating the Form ADV submission is only the beginning of a successful compliance program. Updates to your Form ADV can impact the rest of your overall compliance program, in particular your policies and procedures manual. It is essential to review and revise your compliance manual to ensure internal policies align with any new disclosures and practices outlined in your Form ADV.

We understand that this can be a daunting task for many firms, and we are here to help! Core Compliance has many years of experience reviewing, updating, and submitting this required Form ADV filing, as well as making updates to your policies and procedures accordingly. To get started, contact us at info@corecls.com or (619) 550-1088.

 

[1] Investment Adviser Accounting and Payment Methods | IARD