Annual updating amendment to form adv
The adviser may continue to act as a private fund adviser during this transition period provided that it has previously complied with all of its reporting obligations as an ERA. Advisers and ERAs having a December 31 fiscal year end are obligated to file their annual updating amendment by March 31, 2017. Baker Mc Kenzie can assist you in filing this year’s annual update to your Form ADV.
Contact the Baker Mc Kenzie attorney with whom you work or one of the contacts in the left column for additional details.
A fund manager’s RAUM may be higher than its normally reported AUM because it includes: RAUM should be calculated based on the current market value of the assets as determined within 90 days prior to the date of filing the Form ADV.
For private funds, the SEC has stated that a manager may rely on the gross assets as reflected on the fund’s balance sheet, and the manager may assess the value of financial instruments under the applicable accounting standards, which is GAAP in this industry.
If you have any questions regarding the new Form ADV and its applicability to Massachusetts-registered investment advisers, contact the Massachusetts Securities Division at 617-727-3548.
Each Adviser and ERA must amend its Form ADVs every year by filing an annual updating amendment within 90 days after the end of its fiscal year, or promptly if information previously provided changes or becomes inaccurate.For many firms whose operations have not changed throughout the year, the update should be fairly straight forward – for private fund managers in this situation, the focus mostly will be on the Schedule D, Item 7.B.(1) items (Private Fund Reporting) which include updates to the following items for each fund: Private Fund RAUM The SEC has defined regulatory assets under management (“RAUM”) in Item 5b of the Form ADV instructions (see Form ADV and Filing Instructions for more information).Most of the recent changes enacted by the SEC relate to the "new" Part 2 of the Form. In the past, Form ADV Part II ("Part II") required advisers to respond to a series of multiplechoice and fill-in-the-blank questions organized in a "check-the-box" format, supplemented in some cases with brief narrative responses on Schedule F. Part 2 is being changed so that, rather than a check-the-box format, each adviser will be required to provide clients with a narrative that describes the adviser"s business, identifies conflicts of interest, discloses disciplinary history, provides information on certain supervised persons, and other information. Until an adviser is required to file its annual updating amendment, it may make amendments to the "old" Part II to disclose any material changes to its business.There are also changes to certain instructions and the definitions of terms found in the General Instructions to Form ADV (the "General Instructions"). These changes will affect all Massachusetts-registered investment advisers. All amendments will continue to be made electronically using the IARD system (see below). To whom must I deliver Part 2A (Brochure) and 2B (Brochure Supplements)?