Our Firm Filed Form CRS – What Now?

WHAT HAPPENED?

Initial filings of Form ADV Part 3 (Form CRS) are due by June 30, 2020. For months, retail advisers and their service providers have put much time and effort into understanding, writing, and filing the initial Form CRS document. However, the requirements related to the Form do not stop once the filing is complete; there are several additional steps to take after submitting the form to the SEC. Below are key tasks to keep in mind:

KEY STEPS

  1. Initial and Ongoing delivery:
  • Initial delivery of Form CRS to current retail clients must occur no later than July 30, 2020.
  • Prospective retail clients must receive the Form before or at the time an advisory contract is entered into.
  • If the initial filing is amended, the new version must be delivered to clients within 60 days of any updates.
  • Clients may request a copy of the Form, which must be delivered within 30 days of any received request.
  1. Form CRS recordkeeping:
  • Requirements for Form CRS are much like the recordkeeping requirements for Form ADV Part 2 brochures and supplements.
  • Thorough records of the current Form, all amendments, and the dates of delivery for those amendments to clients or prospects who later became a client must be maintained.
  • These records should be kept and made easily accessible for at least five years after the end of the fiscal year during which the most recent entry was made.
  • An adviser need not maintain records of delivery to prospects who never become clients.
  1. Electronic posting:
  • Form CRS must be prominently posted on an adviser’s website in a manner that is accessible and easy for retail investors to locate.
  • If a firm does not currently have a public website, there is no specific requirement to create one specifically to post the Form.
  1. Compliance policies and procedures:
  • Advisers should update compliance manuals to address Form CRS requirements and delivery obligations if they have not done so already.

WHAT DOES THIS MEAN FOR ME?

If your firm is required to file Form CRS, all the above provisions should be met after or in conjunction with the initial filing, as applicable. If you have questions about how to continue Form CRS implementation post-filing, Fairview can help. Contact today us with inquiries about best practices for completing form filings and meeting other SEC requirements.

About the Author:

Fairview®
Founded in 2005 with the goal of developing streamlined solutions for investment advisers, Fairview® is now servicing investment advisers, foundations, and funds with nearly $300 billion in collective assets.