Reminder: Amendments to Form ADV and the Books and Records Rule Become Effective on October 1, 2017

June 26, 2017

As previously discussed in our memorandum “SEC Adopts Rules to Enhance Information Reported by Investment Advisers,” an investment adviser filing an initial Form ADV or an amendment to an existing Form ADV on or after October 1, 2017 will be required to use a revised Form ADV.1 Moreover, amendments to Rule 204-2 (the “Books and Records Rule”) of the Investment Advisers Act of 1940 will apply to communications circulated or distributed after October 1, 2017.

Amendments to Form ADV will require an adviser to provide additional information regarding its advisory business, including information regarding its separately managed account business, other offices, and social media accounts. The amended Form ADV will also facilitate an “umbrella registration” on a single Form ADV for multiple private fund adviser entities operating a single advisory business under certain conditions.

In addition, amendments to the Books and Records Rule will modify recordkeeping obligations as to certain materials relating to an adviser’s performance or rate of return. For example, the amended rule will require advisers to maintain materials that demonstrate the calculation of performance or rate of return in any communication circulated to “any person” rather than to “10 or more persons” as the rule currently requires.


1 See the SEC’s summary of the changes to Form ADV. As noted in our prior memorandum, only certain of the amendments to Form ADV will apply to Exempt Reporting Advisers.


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