The Securities and Exchange Commission will hold off on certain enforcement actions against registered investment advisors who can’t meet regulatory requirements due to the effects of the coronavirus.
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“The impacts of the coronavirus may delay or prevent funds and advisors operating in affected areas from meeting certain regulatory obligations due to restrictions on large gatherings, travel and access to facilities, the potential limited availability of personnel and similar disruptions,” the SEC said in a press release.
Chairman Jay Clayton stressed that the agency is “ready to take action in the interest of our investors and our markets as appropriate.”
The relief announced on Friday “will provide additional time so affected funds and advisers can continue meeting the expectations of their investors and clients,” he said.
The SEC issued three points of relief related to the Investment Advisers Act of 1940:
- “Registered investment advisers and exempt reporting advisers affected by coronavirus to file an amendment to Form ADV or file reports on Form ADV part 1A, respectively;
- “Registered investment advisers affected by coronavirus from requirements to deliver amended brochures, brochure supplements or summary of material changes to clients where the disclosures are not able to be timely delivered because of circumstances related to coronavirus; and
- “Private fund advisers affected by coronavirus from Form PF filing requirements.”
Funds that are prevented from delivering current prospectuses to investors in a timely manner due to the coronavirus will also be relieved from facing an enforcement action.
Advisors who intend to rely on the relief should notify the SEC of their intent to do so, and disclose such information on their websites.
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Danielle Andrus works as an editor for The Financial Planning Association® (FPA®). Over the past 15 years, she has worked in various capacities, including writing and editing. Andrus has worked for several notable publications and outlets and spent more than seven years as the executive managing editor at ALM Media, publisher of Investment Advisor magazine and ThinkAdvisor.com. Before that, she was online editor for Summit Professional Networks, where she oversaw newsletter development for four magazines, including Benefits Selling, Senior Market Advisor, Boomer Market Advisor, and Bank Advisor.
