Changes to ADV Part 1 – “Large Advisers”

My previous post discussed the new range of choices in Item 2 for SEC registration. While most of the options were already familiar, the “large adviser” and “mid-sized” adviser options were new. This post discusses the attendant changes to the ADV 1 Instructions regarding the “large adviser” option for SEC registration (the next post will address instructions for “mid-sized advisers”).

According to the new Instructions for Item 2, a Large Adviser is an:

Adviser with Regulatory Assets Under Management of $100 Million or More. Therefore, a registrant may check box 1 [in Item 2] only if they have regulatory assets under management of $100 million or more, or if they are filing an annual updating amendment with the SEC and and they have regulatory assets under $90 million or more. While an adviser may register with the SEC if their regulatory assets under management are at least $100 million but less than $110 million, they must register with the SEC if their regulatory assets under management are $110 million or more. If you are a SEC-registered adviser, you may remain registered with the SEC if your regulatory assets under management are $90 million or more.

If you are a state-registered adviser and you report on your annual updating amendment that your regulatory assets under management increased to $100 million or more, you may register with the SEC. If your regulatory assets under management increased to $110 million or more, you must register with the SEC within 90 days after you file that annual updating amendment.

Leave a Reply