Doug Cornelius on compliance for private equity real estate
There are a few different ways to calculate Assets Under Management. The SEC has prescribed ways to calculate Regulatory Assets Under Management. Often AUM and RAUM will differ depending on an adviser’s business model and client base. But you can’t just make up RAUM. Rubin Cedric Williams did so at his firm Vista Financial Advisors. … Read more »
Once every four years we get a February 29. 2024 is one of those years. The big compliance impact is for annual and quarterly reporting. If the standard is 90 days after year-end, that is March 30 and not the usual March 31. That is especially relevant for Form ADV. Make sure to get it … Read more »
Most investment advisers filed their form ADVs last week, before the March 31 filing deadline. That didn’t stop the Securities and Exchange Commission from publishing a new FAQ about Form ADV on April 6. Hopefully you got it right. There has been some questions about office locations that need to be disclosed on Form ADV … Read more »
The SEC must have realized that its relief from Form ADV filing and Form PF filing deadlines was not providing much relief. The SEC issued a new order for the deadlines. You still have to send the SEC a notice that your firm is relying on the Order, but you no longer have to say … Read more »
Gregory M. Prusa was the Chief Compliance Officer of the Salus, LP, a hedge fund. Among other problems, Mr. Prusa made false or misleading statements in the Form ADV filing for Salus. Now he is barred from the securities industry. The general rule is the the CCO should only be subject to an action if … Read more »
The Securities and Exchange Commission has been working on a way for consumers to better understand the difference between securities brokers and investment advisers. The Department of Labor made an attempt with respect to retirement plans, but that is a mess. I’m not sure how much of a mess the new Regulation Best Interest is … Read more »
With the statutory changes from Dodd-Frank, the Securities and Exchange Commission started gathering basic information about private fund managers and their funds on Form ADV. The SEC increased that information flow by requiring Form PF. Unlike Form ADV, Form PF provides detailed information about the private fund’s activities and performance. That left many reluctant to … Read more »
For those of us working with registered investment advisers, the deadline for filing Form ADV is quickly approaching. I’ve heard a few people struggling to classify their clients. I put together this chart to help me think about it. With the recent changes to Form ADV, I see the SEC carving client accounts … Read more »
That headline is incorrect. I can’t speak for the entire SEC, especially with Congressional funding in jeopardy between now and then. However, The IARD system is operating on March 31. If you have to file your Form ADV, it is due to be filed by March 31. Back in 2013, March 31 fell on a … Read more »
Earlier this month, the Securities and Exchange Commission released 23 new frequently asked questions (“FAQs”) on Form ADV to provide guidance on recent amendments to Form ADV. Those amendments become effective in October. These new FAQs include guidance on (i) the umbrella registration approach that many private fund sponsors use to register multiple affiliates and … Read more »