Compliance Alert: New SEC Rules and Form ADV Update -

Performance Record Retention

 Performance Record Retention

New SEC requirements significantly expand public disclosures by registered investment advisers for their SMA businesses. The requirements take effect Oct 1, 2017. The SEC also confirmed provisions for "umbrella registration" of related advisers and generally overhauled many questions on Form ADV. There is time to act, but many to-do's follow from the new rules. Our webinar will cover practical tips for the coming compliance challenges.

 You can download a full copy of the slides from this webinar.


Full video transcript available below:


Okay. As I said as the outset, remember that we have four main changes embodied in the rulemaking. The SMA rules, which we have gone through, umbrella registration, which we have discussed, the miscellaneous, the broad sets of things they tinkered with in the form, which Pat has just walked us through, and then two new rules around performance records, and that's where we are here. Now, also as I said at the outset, these rules have basically been greeted with acceptance by the industry, because the industry says, "I largely keep this data, and I largely keep these records in the course of my business anyway." What are they. First, new rule, 204-2, which is the recordkeeping rule, and new paragraph A16 inside that rule. It used to be that you kept records referring to performance claims if they were circulated to ten or more people.


Now their essentially saying anything you circulate, even to one person that has performance claims. Then you have to keep the underlying data that backs up your performance claim. I think again people say to themselves, "I do that." The next one there, again a piece of the recordkeeping rule, rule 204-2 and here amending paragraph 7, an existing paragraph within the rule to keep communication either received or sent that relate to the performance return of managed accounts or securities recommendation. I think here this does do something that people may not do today, but my understanding is most people are keeping these records as a matter of course. They're automatically keeping these types of communications.

When does this go into effect? The same time as the ADD rule. The ADV changes go into effect October 1 of next year, so do the new recordkeeping rules.

This webinar was co-hosted with Shearman & Sterling LP. To learn more visit

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