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The SEC Extends the Compliance Dates for delivery of “Brochure Supplements”

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Written by Michael Wu

On July 28, 2010, the Securities and Exchange Commission (“SEC”) adopted amendments to Part 2 of Form ADV, and related rules under the Investment Advisers Act of 1940, as amended (the “Advisers Act”), to require registered investment advisers to provide clients with a “brochure” under Part 2A of Form ADV and a “brochure supplement” under Part 2B of Form ADV written in plain English.  The brochure contains information about the advisory firm and the brochure supplement contains information about the personnel who provide investment advice.

On December 28, 2010, the SEC extended the compliance dates for the brochure supplement.  Specifically, the new compliance dates are as follows:

  • New Investment Advisers: investment advisers filing their applications for registration between January 1, 2011 and April 30, 2011, have until May 1, 2011 to begin delivering brochure supplements to new and prospective clients and until July 1, 2011 to deliver brochure supplements to existing clients.  The compliance dates for investment advisers filing their applications for registration after April 30, 2011 remain unchanged.
  • Existing Investment Advisers: existing investment advisers with a fiscal year ending on December 31, 2010 through April 30, 2011, have until July 31, 2011 to begin delivering brochure supplements to new and prospective clients and until September 30, 2011 to deliver brochure supplements to existing clients.  The compliance dates for existing investment advisers with fiscal years ending after April 30, 2011 remain unchanged.

Please note that the SEC is not extending the compliance date for filing and delivery of the brochure required by Part 2A of Form ADV and the related rules under the Advisers Act.  The full text of the adopting rule is available here.