Approaching Investment Adviser Deadlines and Obligations

Investment advisers face several important deadlines.

First, by March 31st, Part 1 of the Form ADV must be updated through the IARD for advisers with a fiscal year end of December 31st.

Second, by April 5, advisers must examine the effectiveness of their compliance policies and procedures. This is the SEC's deadline for the fist annual compliance review. Reviews should be conducted by independent individuals who are not immediately responsible for implementing a particular procedure. The chief compliance officer must conduct an overall analysis and approval of policies and procedures. SNSFE attorneys conduct annual reviews to assist investment advisers.

One area that investment advisers overlook is to perform a risk analysis of findings with a plan to address necessary changes. Additionally, the "Top 5" deficiencies found in SEC examinations last year were: disclosure; portfolio management; advisory employees personal trading; performance calculations; and brokerage arrangements and execution.