FINANCIAL SERVICES: SEC issues temporary exemptions for certain filings

3/19/2020 Stuart Smith

The outbreak of coronavirus disease 2019 (COVID-19) has caused worldwide disruptions and quarantines that have limited investment advisors’ access to facilities, personnel, and third-party service providers. As a result, the Securities and Exchange Commission (“SEC”) has issued a temporary exemption from certain Form ADV and Form PF filing requirements pursuant to the provisions of the Investment Advisers Act of 1940 (Advisers Act).

The relief is limited to filing or delivery obligations, as applicable, for which the original due date is on or after March 13, 2020, but on or before April 30, 2020. The period may later be extended, potentially with additional conditions.

As written in the SEC order, the exemption applies if three conditions are satisfied:

1) The registered investment advisor (RIA) or exempt reporting advisor (ERA) is unable to meet a filing deadline or delivery requirement due to circumstances related to current or potential effects of COVID-19;

2) The RIA or ERA relying on this order with respect to the filing of either Form ADV [or delivery of its brochure, summary of material changes, or brochure supplement required by Rule 204-3(b)(2) or (b)(4)] or Form PF [required by Rule 204(b)-1] promptly provides the SEC with the following information via email at IARDLive@sec.gov and discloses it on its public website (or, if it does not have a public website, promptly notifies its clients and/or private fund investors):

(1) that it is relying on the order;

(2) a brief description of why it could not file or deliver the form on a timely basis; and

(3) the estimated date by which it expects to file or deliver the form.

3) The RIA or ERA files the form, and delivers the brochure (or summary of material changes) and brochure supplement required by Rule 204-3(b)(2) and (b)(4), as soon as practicable, but not later than 45 days after the original due date for filing or delivery.

The COVID-19 outbreak is requiring advisers to consider many factors related to trading and operational aspects of their business. Please keep in mind regulatory filing requirements and whether you will be able to meet the deadlines.

William Pidgeon, CPA, Partner, Financial Services Industry Co-leader

786.687.7504

Marc Wolf, CPA, Partner, Financial Services Industry Co-leader

310.843.8274

Gary Berger, CPA, Partner, Financial Services Industry Leader – Northeast

646.625.5733

Joshua Blumenthal, CPA, Partner

646.448.5411

John Stomper, CPA, Partner

312.854.1165

Stuart Smith, CPA, Director

862.245.5043

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