As Josh discussed earlier this week, the annual update to Form ADV is generally due at the end of March for most robo-advisers.  However, we are interrupting our current discussion thread to make sure you were aware that on March 13, 2020, the SEC extended Form ADV filing and delivery deadlines for investment advisers whose operations may be affected by the coronavirus.  The agency acknowledged that the impacts of the pandemic may delay or prevent advisers operating in affected areas from meeting certain regulatory obligations due to restrictions on travel, access to facilities, the potential limited availability of personnel and similar disruptions.

To enable advisers to meet those obligations and to continue their operations, while recognizing that there may be temporary disruptions outside of their control, the SEC issued an order (“Order”), effective through April 30, 2020, exempting advisers from the requirements to (i) file an amendment to Form ADV and (ii) deliver amended brochures, brochure supplements or summaries of material changes to clients.

The exemptions are available provided that the firm:

  • is not able to meet a filing deadline or delivery requirement due to circumstances related to the coronavirus;
  • promptly notifies the SEC via email and the public via its website that it’s relying on the Order, why it’s relying on the Order and when it expects to be able to meet the filing or delivery deadline; and
  • meets the filing or delivery deadline by no later than 45 days after the original due date.

Please don’t hesitate to reach out to us with questions on how the Order may affect your firm.  We will continue to monitor regulatory events related to coronavirus and keep you updated.   And be sure to check back soon, as we plan to return to our regularly scheduled discussion topic – how to ensure that your algorithm continues to work for clients the way that you intend.