COVID-19: Investment Fund and Adviser Relief

The Securities and Exchange Commission (SEC) is granting certain investment funds and investment advisors extra time to file certain reports with the commission due to the impact of COVID-19.

Included within their release, the Commission said, “The health and safety of all participants in the securities markets is of paramount importance, and the Commission recognizes that investment advisers and other market participants continue to face challenges in meeting the requirements of the federal securities laws addressed in the Original Order in a timely manner.”

On March 13, 2020, the SEC issued Release No. 5463, the “Original Order” referred to above, Order Under Section 206A of the Investment Advisors Act of 1940 Granting Exemptions from Specified Provisions of the Investment Advisors Act and Certain Rules Thereunder, which provided relief for certain Form ADV and Form PF requirements for certain filing obligations due on or after March 13, 2020 but prior to April 30, 2020.

On March 25, 2020, the SEC issued Release No. IA-5469 (“the Order”), extending the time period for relief from April 30, 2020 to June 30, 2020. This order supersedes Release No. 5463. It is worth noting that the Order now encompasses certain Q1 2020 filings.

During the relief period, Registered Investment Advisors (“RIAs”) are exempt from the following requirements, given the conditions are met: (a) filing an amendment to Form ADV under Advisers Act Rule 204-1, and (b) delivering Form ADV Part 2 (or a summary of material changes) to existing clients under Advisers Act Rule 204-3(b)(2) and (b)(4). In addition, RIAs that are required to file Form PF under the Advisers Act Rule 204(b) and 204(b)-1 are exempt from the requirement. Exempt Reporting Advisers (“ERAs”) are exempt from the requirement to file reports on Form ADV under Advisers Act Rule 204-4.

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