Division of Investment Management:
Electronic Filing for Investment Advisers on IARD

Welcome to the Investment Adviser Registration Depository (IARD) Homepage with current information about IARD, electronic filing and related information for SEC Registered Investment Advisers

	If you want to register as an investment adviser with the SEC, check the information under "How To Register."
	If you want information on investment advisers, check "Adviser Info on IAPD."

IARD Announcements

Adviser Custody Rule and Related Form ADV Changes Adopted for SEC Advisers

The Commission adopted amendments to the custody rule under the Investment Advisers Act of 1940. Amended rule 206(4)-2 requires advisers with custody to keep client assets with banks, broker-dealers or other qualified custodians. Advisers whose clients receive account statements directly from the qualified custodian are relieved from sending their own account statements and undergoing annual surprise examinations.

The Commission also amended two custody-related items in Form ADV. SEC-registered advisers that have custody only because they deduct fees directly from their advisory clients' accounts may answer "no" to Items 9A.(1) and 9A.(2) of Part 1A. For most advisers, this new instruction will not require a different response to Item 9 because they, in reliance on SEC staff no-action letters, have not previously treated their ability to deduct fees as giving them custody of client assets. SEC-registered advisers are also not required to provide a Schedule G balance sheet in response to Item 14 of Part II solely because they have custody (advisers must still provide a balance sheet if they require certain prepaid fees). Advisers may begin relying on the amendments on November 5, 2003, and advisers must be in compliance with the amendments by April 1, 2004.

Clarifying Amendments Adopted To Form ADV

On July 14, 2003, the Commission approved the adoption of certain technical revisions to Forms ADV, ADV-W and ADV-H and related rules under the Investment Advisers Act of 1940. These changes are designed to provide additional help to advisers when completing and filing their forms.

Anti-Money Laundering Regulations Proposed for SEC Advisers

The Department of Treasury has proposed a new anti-money laundering rule under the USA Patriot Act of 2001 that will require those SEC registered investment advisers who manage client assets to establish anti-money laundering programs. Certain unregistered advisers also are covered by the proposed rule. The proposed rule would define these advisers as "financial institutions" under the Patriot Act's provisions. Advisers will be required to have 1) anti-money laundering internal policies, procedures, and controls; 2) a designated compliance officer; 3) an ongoing employee training program; and 4) an independent audit function to test the firm's programs. Public comments should be submitted to the Financial Crimes Enforcement Network, Department of the Treasury by late June, 2003.

Proxy Voting Disclosure Adopted for SEC Advisers

The Commission adopted a new rule 206(4)-6 requiring SEC-registered investment advisers that exercise voting authority over client securities to adopt policies and procedures reasonably designed to ensure that the adviser votes proxies in the best interests of clients. These advisers are required to inform clients about their policies and procedures, give clients a copy upon request, and disclose to clients how they can obtain information from the adviser about proxy votes cast. Rule 204-2, the books and records rule, also was amended to require that these advisers maintain certain records of their proxy voting activities. Advisers must be in compliance with the new rule and amendments by August 6, 2003.

SEC Staff Releases IARD Financial Information

The Division of Investment Management today released Summary Financial Information for the Investment Adviser Registration Depository. Revenues are running higher than staff projections had estimated, and the system should be debt-free within the next year. Surpluses will be used to finance improvements to the IARD, including making it available for advisers to file Part 2 of Form ADV.

Adviser Filings Now Available to Public On-Line

Since September 25, 2001, investors have had Internet access to information contained in Form ADV electronic filings made by investment advisers on www.adviserinfo.sec.gov. This new Investment Adviser Public Disclosure (IAPD) website was launched by the SEC and NASAA to provide clients and prospective clients of advisers with direct access to Form ADV filings made by the approximately 7,800 SEC-registered advisers and 8,200 state-registered advisers who file Form ADV through IARD. This electronic database will expand significantly because increasing numbers of state-registered advisers are switching to electronic filing each day.

All information filed by advisers on Form ADV is available on this new website except for social security numbers, certain home addresses, and contact employee information. The new website is available free of charge, 24 hours a day. In the future investors may be able to access information about "investment adviser representatives."

http://www.sec.gov/divisions/investment/iard.shtml