SEC Offers Regulatory Relief to Advisers Affected by Hurricanes

On September 28, 2017, the SEC provided regulatory relief to individuals and entities subject to the ’33 Act, ’34 Act and ’40 Act who were affected by Hurricanes Harvey, Irma or Maria. The relief came in the form of conditional exemptions from certain requirements.

The hurricanes, which struck between August and September of 2017, devastated large swaths of the Caribbean as well as areas of Texas, Louisiana and Florida. Advisers located in these regions have experienced issues ranging from loss of power to destruction of infrastructure. The SEC has used its statutory authority to offer relief to those affected by the storms.

Regarding registered investment advisers, the relief came in four main initiatives:

  1. Advisers affected by Hurricane Harvey will have their ADV filing requirements considered satisfied if: (1) their deadline for filing fell between August 25 and October 6, 2017; (2) the Adviser couldn’t meet their filing deadline because of Hurricane Harvey; and (3) the Adviser submits their Form ADV filing by October 10, 2017.
  2. Advisers affected by Hurricane Irma will have their ADV filing requirements considered satisfied if: (1) their deadline for filing fell between September 6 and October 18, 2017; (2) the Adviser couldn’t meet their filing deadline because of Hurricane Irma; and (3) the Adviser submits their Form ADV filing by October 19, 2017.
  3. Advisers affected by Hurricane Maria will have their ADV filing requirements considered satisfied if: (1) their deadline for filing fell between September 20 and November 1, 2017; (2) the Adviser couldn’t meet their filing deadline because of Hurricane Maria; and (3) the Adviser submits their Form ADV filing by November 2, 2017.
  4. Advisers affected by Hurricane Harvey, Hurricane Irma or Hurricane Maria will be considered to have satisfied their requirement to deliver written disclosure statements to their advisory clients if: (1) the client’s mailing address has a zip code for which mail service has been suspended as the result of Hurricane Harvey, Hurricane Irma or Hurricane Maria; and (2) the Adviser promptly delivers the written disclosure either (i) if requested by the client or (ii) at the earlier of November 2, 2017 or the resumption of mail service.

This should be welcomed relief for those affected by any of these storms. For further information on how Ascendant can help those affected, please contact us today.

 

Related Content

Latest Content

Cyber Crimes – Don’t Forget to File that SAR!

  Stopping, or even slowing, the proliferation of cyber-event related criminal activities remains a chief goal in the broker-dealer and investment advisory communities. As pointed out in a 2016 advisory released by the Financial Crimes Enforcement Network (“FinCen”), “Cyber-events targeting financial institutions often constitute criminal activity and can serve as means to commit a wide range of … Continued

DOL Rule Extension to Overlap with SEC Consideration of Fiduciary Standards

Following the Department of Labor’s November 27, 2017 announcement of an 18-month extension to the existing Fiduciary Rule transition period, the industry will enter a period of further study for proper standards for disclosure or elimination of conflicted compensation arrangements. That’s a mouthful right there. The Obama administration’s March 31, 2017 implementation of various new prohibited … Continued

Schedule 13D/13F Clarity on ETF Issues

Do I need to file a 13D or 13G if my client accounts hold in excess of 5% of an ETF? Generally, no. The SEC has granted no-action relief to ETFs with respect to compliance with Section 13(d) of the Securities Exchange Act. Section 13(d) was designed to require disclosure when holders begin to accumulate … Continued

New Remedy Coming for SEC’s Custody Rule?

The SEC’s Custody Rule continues to be a common source of confusion and a landmine for noncompliance. Custodial paperwork has caused huge headaches for investment advisers, who are not a party to the agreement and may not even have a copy of the custodial new account paperwork. The issue with existing guidance is that it … Continued

SEC Issues MiFID II No-Action Relief

Some industry anxiety was assuaged on October 26 with three no-action letters that offer relief for some US regulated broker-dealers and investment advisers regarding European MiFID II regulations. The letters followed consultation with the European authorities, and are designed to address concerns that investors could lose access to valuable research. MiFID II is a series of regulations … Continued

Mailing List

Subscribe to the Ascendant Compliance email list for the latest compliance resources, conferences, ComplianceCasts™, and more.

Loading form...

Contact Us

Ascendant works together with clients to identify and assess critical needs through customized plans. If you need assistance with compliance functions, regulatory services, cybersecurity or technology tools, we’d love to speak with you.