PART 2 (OF FORM ADV) POINTERS
1. Web CRD/IARD Allows You to File Part 2 Electronically
Since 2007, the online Investment Adviser Registration Depository (IARD) has been able to accept the filing of Form ADV Part 2 electronically.
2. PDF Format Required
Form ADV Part 2 must be submitted to IARD as a searchable text, portable document format (PDF) file. For guidance on how to use this functionality, see the Form ADV Part 2 (IARD System Instructions
) available on the IARD website.
3. Recent Amendments to Part 2 of Form ADV
On July 28, 2010 the Securities and Exchange Commission released a revised Form ADV [SEC Release No. IA-3060
; File No. S7-10-00]. The release amended Part 2 of Form ADV (also called the “brochure” or new Part 2). To provide more meaningful disclosure to advisory clients, the amendment changed the format of Part 2 from a check-the-box form to a narrative brochure written in plain English. The brochure must be filed electronically through the IARD System.
New Part 2 has three parts: 1) Part 2A (the Firm Brochure); 2) Part 2A Appendix 1 (Wrap Fee Program Brochure); and 3) Part 2B (the Brochure Supplement, providing information on investment advisory personnel). Each investment adviser must complete new Part 2A (the Firm Brochure) and Part 2B (the Brochure Supplement). Only investment advisers who provide wrap fee programs are required to submit Appendix 1 to Part 2A (the Wrap Fee Program Brochure).
4. Timetable for Filing New Part 2 of Form ADV
The Securities and Business Investments Division is adopting the new Part 2, effective October 12, 2010.
New Applicants for Investment Adviser Registration
As of January 1, 2011 all new investment adviser applicants will have to file, through the IARD, the new Part 2 of Form ADV as part of their application. Prior to January 1, 2011, new applicants for investment adviser registration may use either the current Part II of Form ADV or the new Part 2, and file that document electronically with the IARD or in paper format with the Division.
Investment Advisers Registered on or Before December 31, 2010
As of January 1, 2011, all Connecticut-registered investment advisers will need to incorporate the new Part 2 of Form ADV with their next filing of an amendment to Form ADV, and file that amendment electronically through IARD. While Connecticut does not require that advisers file an annual updating amendment, Section 36b-31-14e(a) of the Regulations under the Connecticut Uniform Securities Act requires that investment advisers amend their Form ADV when it becomes materially inaccurate or incomplete. In addition, Section 36b-31-5c(d)(1) of the Regulations requires advisers to deliver or offer to deliver the brochure to their clients each year.
Investment advisers registered in Connecticut on or before December 31, 2010 should file an updated Part 2 through the IARD using the new narrative form commencing January 1, 2011 and no later than June 1, 2011.
Prior to January 1, 2011, the Division will accept amendments from current registrants using either old Part II or new Part 2. These amendments may be filed electronically through the IARD or in paper form with the department.