The Securities and Exchange Commission has released additional Form ADV and IARD frequently-asked-questions guidance addressing cross-border investment managers.
Staff in the SEC’s Division of Investment Management advises in the FAQs that non-U.S. investment funds, including Undertakings for Collective Investment in Transferable Securities (UCITS), which are mutual funds based in the European Union, should be classified as “pooled investment vehicles” when describing assets.
Also, a non-resident general practitioner or managing agent of a “relying advisor” must file Form ADV-NR.
Cipperman Compliance Services notes that the guidance also “broadly defines ‘borrowings’ for purposes of whether an advisor engages in borrowing transactions on behalf of clients, explain social media disclosure, and clarify that the new Form supersedes SEC no-action relief with respect to relying advisors.”
In 2012, the staff of the Commission provided guidance that enumerated conditions under which the staff believed one advisor (the “filing advisor”) could file a single Form ADV on behalf of itself and other advisors that were controlled by or under common control with the filing adviser (each, a “relying advisor”), provided that they conducted a single advisory business (collectively an “umbrella registration”).