[Federal Register Volume 85, Number 61 (Monday, March 30, 2020)]
[Notices]
[Pages 17609-17610]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2020-06519]
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SECURITIES AND EXCHANGE COMMISSION
[Release No. IA-5469/March 25, 2020]
Order Under Section 206a of the Investment Advisers Act of 1940
Granting Exemptions From Specified Provisions of the Investment
Advisers Act and Certain Rules Thereunder
On March 13, 2020, in response to the potential effects of
coronavirus disease 2019 (COVID-19), the Securities and Exchange
Commission (the ``Commission'') issued an order \1\ (the ``Original
Order'') pursuant to its authority under Section 206A of the Investment
Advisers Act of 1940 (the ``Advisers Act'' or ``Act'') granting
exemptions from certain provisions of that Act and the rules
thereunder. The Commission has been monitoring the effects of COVID-19
and is now extending the exemptions with certain modifications in light
of its current understanding of the circumstances. 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. For this reason and the reasons stated in the
Original Order, the Commission finds that extending the exemptions,
pursuant to its authority under Section 206A of the Advisers Act, is
necessary and appropriate in the public interest and consistent with
the protection of investors and the purposes fairly intended by the
policy and provisions of the Advisers Act, and necessary and
appropriate to the exercise of the powers conferred on it by the
Advisers Act. The necessity for prompt action of the Commission does
not permit prior notice of the Commission's action. This Order
supersedes the Original Order.
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\1\ Investment Advisers Act Release No. 5463 (Mar. 13, 2020),
available at https://www.sec.gov/rules/other/2020/ia-5463.pdf.
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I. Time Period for the Relief
The relief specified in this Order is limited to filing or delivery
obligations, as applicable, for which the original due date is on or
after the date of the Original Order but on or prior to June 30, 2020.
The Commission intends to continue to monitor the current situation.
The time period for any or all of the relief may, if necessary, be
extended with any additional conditions that are deemed appropriate,
and the Commission may issue other relief as necessary or appropriate.
II. Form ADV and Form PF Filing Requirements for Registered Investment
Advisers and Exempt Reporting Advisers
As we observed in the Original Order, disruptions resulting from
COVID-19 could hamper the efforts of investment advisers to timely meet
certain filing and delivery deadlines. At the same time, advisory
clients and the Commission have an interest in the timely availability
of required information about investment advisers, and we remind
investment advisers who rely on this Order to continue to evaluate
their obligations, including their fiduciary duty, under the federal
securities laws. In light of our current understanding of the
nationwide scope of COVID-19's disruptions to businesses and everyday
activities, and the uncertainty as to the duration of these
disruptions, we are removing the Original Order's conditions that an
investment adviser that intends to rely upon the relief must (i)
include, in its email correspondence to Commission staff and on its
website, as applicable,
[[Page 17610]]
why it is unable to meet a filing deadline or delivery requirement and
(ii) provide an estimated date of filing or delivery completion.
It is ordered, pursuant to Section 206A of the Advisers Act:
For the time period specified in Section I, a registered investment
adviser is exempt from the requirements: (a) Under Rule 204-1 under the
Advisers Act to file an amendment to Form ADV; and (b) under Rule 204-
3(b)(2) and (b)(4) related to the delivery of Form ADV Part 2 (or a
summary of material changes) to existing clients, where the conditions
below are satisfied;
For the time period specified in Section I, an exempt reporting
adviser is exempt from the requirements under Rule 204-4 under the
Advisers Act to file reports on Form ADV, where the conditions below
are satisfied; and
For the time period specified in Section I, a registered investment
adviser that is required by Section 204(b) of and Rule 204(b)-1 under
the Advisers Act to file Form PF is exempt from those requirements,
where the conditions below are satisfied.
Conditions
(a) The registered investment adviser or exempt reporting adviser
is unable to meet a filing deadline or delivery requirement due to
circumstances related to current or potential effects of COVID-19;
(b) The investment adviser relying on this Order with respect to
the filing of Form ADV or delivery of its brochure, summary of material
changes, or brochure supplement required by Rule 204-3(b)(2) or (b)(4),
promptly notifies the Commission staff via email at IARDLive@sec.gov
and discloses on its public website (or if it does not have a public
website, promptly notifies its clients and/or private fund investors)
that it is relying on this Order.
(c) Any investment adviser relying on this order with respect to
filing Form PF required by Rule 204(b)-1 must promptly notify the
Commission staff via email at FormPF@sec.gov stating that it is relying
on this Order.
(d) The investment adviser files the Form ADV or Form PF, as
applicable, and delivers the brochure (or summary of material changes)
and brochure supplement required by Rule 204-3(b)(2) and (b)(4) under
the Advisers Act, as soon as practicable, but not later than 45 days
after the original due date for filing or delivery, as applicable.
By the Commission.
Vanessa A. Countryman,
Secretary.
[FR Doc. 2020-06519 Filed 3-27-20; 8:45 am]
BILLING CODE 8011-01-P