The final stage of the annual renewal process is your fiscal year end filings. As your investment adviser’s fiscal year end is December 31, your filing due dates are outlined below:
|Action Item||Where/To Whom||Action Due Date|
|File Form ADV Parts 1 & 2||IARD||March 31, 2018|
|Deliver or Offer Form ADV 2||Clients||April 30, 2018|
|File GAAP Balance Sheet||Securities Division||April 30, 2018|
|File Fund Audit (Private Fund only)||Securities Division||April 30, 2018|
Annual Filing Requirements
You are required to file an annual updating amendment. This is required even if there have been no changes since your last filing. In order to ensure that the Form ADV Part 1 has been updated properly, please ensure that you have passed the “Completeness Check” and “Submit Filing.”
If your firm conducts business at locations other than your principal office, the Securities Division requires that you also submit a Form BR listing these locations.
New: Please note the SEC recently amended Form ADV (the first material amendment since 2011). These revisions will likely impact your responses, particularly regarding clients and assets under management in Item 5.
New: On September 29, 2017, the Securities Division adopted Securities Act Policy Statement 23, which addresses custody requirements for investment advisers with Standing Letters of Authorization (SLOA) arrangements established by a client with a qualified custodian.
You are required to update Form ADV Part 2 at least annually if there are any changes when you file your annual updating amendment. For example, if your assets under management have changed, you must update your Part 2. If there have been no changes, you must attest to the accuracy of your Part 2 by clicking “Brochure ID” to verify that the brochure on file is up to date, select the “Confirm” radio button, and then click “Save.”
If there have been material changes to your Form ADV Part 2, you are required to annually deliver, without charge, your Form ADV Part 2 to each of your clients (or offer, in writing, to deliver it). This must include a summary of material changes. You may deliver your Form ADV Part 2 (or the offer to deliver it) electronically to those clients that have opted to receive communications via electronic delivery in your advisory agreement. Please note that you must maintain evidence of the annual delivery or offer.
You are required annually to submit a balance sheet dated as of the last day of your most recent fiscal year end to the Securities Division The balance sheet must be prepared in accordance with Generally Accepted Accounting Principles (GAAP), with a written attestation that your balance sheet is true and complete to the best of your knowledge upon submission. This written attestation can be attached to your balance sheet or in the body of your email submission to the Division at IALicensing@dfi.wa.gov.
If you have custody, absent an exemption, your firm’s balance sheet will need to be audited by an independent certified public accountant and must include the accountant’s audit opinion.
If your principal place of business is located in the State of Washington, your minimum financial requirements are as follows:
- If you have custody of client funds or securities, you must maintain at all times a net worth of at least $35,000;
- If you have discretion, you must maintain at all times a net worth of at least $10,000; or
- If you have neither discretion nor custody, you must be able to maintain a positive net worth.
Please note that the Securities Division may request your income statement, statement of cash flows, statement of owner’s equity, and trial balances to support and/or verify the information on the investment adviser’s balance sheet.
If you utilize a bond to meet your minimum financial condition, please submit a copy of the bond renewal confirmation from the insurance company.
If your firm manages a private fund, you are required to submit a copy of your annual fund audit to IALicensing@dfi.wa.gov within 120 days after your fiscal year end.
Warning to Late and/or Non-Filers
Investment advisers who fail to file the required documents within the due dates following their fiscal year end can expect to be referred for administrative action, which may include suspension or revocation of your license and fines.
No Longer in Business
If your firm is no longer intending on providing investment advisory services, please file a Form ADV-W to request withdrawal of your investment adviser registration. Instructions on filing Form ADV-W can be found here: https://www.iard.com/advw_instructions. The Securities Division must receive this document to properly close your investment adviser licensing file.
Resources and Contact Information
|Help & Training||https://www.iard.com/help-training|
|Form ADV Part 1||http://www.iard.com/part1instructions.asp|
|Form ADV Part 2||http://www.iard.com/part2instructions.asp|
|IARD Call Center||(240) 386-4848|
|Securities Division Information||Resource|
|General Questions||(360) 902-8815|
|Pooled Investment Vehicles/Private Fund Advisers||(360) 902-8786|
Announcement Regarding Future Mailings
Please note that after this 2017-2018 renewal season, we will no longer automatically send any renewal and filing notices via hard copy. We will continue to send communication via email and post notices on our website at http://dfi.wa.gov/investment-advisers. In order to ensure proper delivery, please review the email address(es) filed on your Form ADV.
If you have any questions or would like to continue receiving hard copy notices, please contact us at IALicensing@dfi.wa.gov or (360) 902-8815.
See: PDF Of This Notice