[Federal Register Volume 85, Number 54 (Thursday, March 19, 2020)]
[Notices]
[Page 15829]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2020-05710]
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SECURITIES AND EXCHANGE COMMISSION
[Release No. 5463/March 13, 2020]
Investment Advisers Act of 1940; 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
The current outbreak of coronavirus disease 2019 (COVID-19) was
first reported on December 31, 2019. The disease has led to disruptions
to transportation, including buses, subways, trains and airplanes, and
the imposition of quarantines around the world, which may limit
investment advisers' access to facilities, personnel, and third party
service providers. The Commission recognizes that, in these
circumstances, investment advisers may face challenges in timely
satisfying provisions of the Investment Advisers Act of 1940
(``Advisers Act'') and rules thereunder concerning the filing and
delivery of certain reports and disclosures. In light of the current
situation, we are issuing this Order providing a temporary exemption
from certain requirements of the Advisers Act.
Section 206A of the Advisers Act provides that the Commission may
conditionally or unconditionally exempt any person or transaction, or
any class or classes of persons or transactions, from any provision or
provisions of the Advisers Act, or any rule or regulation thereunder,
if and to the extent that such exemption is necessary or 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.
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 this Order but on or prior to April 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
The disruptions resulting from COVID-19 that are mentioned above
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 the current and potential effects of
COVID-19, the Commission finds that the exemptions set forth below:
Are 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
are 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.
Accordingly, 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 of 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 provides the Commission via email at [email protected] and
discloses on its public website (or if it does not have a public
website, promptly notifies its clients and/or private fund investors
of) the following information:
(1) That it is relying on this Order;
(2) a brief description of the reasons why it could not file or
deliver its Form on a timely basis; and
(3) the estimated date by which it expects to file or deliver the
Form.
(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 via email at [email protected] stating:
(1) That it is relying on this Order;
(2) a brief description of the reasons why it could not file its
Form on a timely basis; and;
(3) the estimated date by which it expects to file the Form.
(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.
J. Matthew DeLesDernier,
Assistant Secretary.
[FR Doc. 2020-05710 Filed 3-18-20; 8:45 am]
BILLING CODE 8011-01-P