This is a busy time for many SEC registered managers related to disclosure requirements. SEC registered managers are required to file updated Form ADVs with the SEC within 90 days of the fiscal year-end (March 31 deadline for managers with a December 31 fiscal year-end).
Managers provide portions of their updated Form ADVs to investors in private funds within 120 days of the fiscal year-end.
The timing of SEC disclosure requirements means that certain fund investors may not receive updated information on a manager, its personnel, operations or investment products until well after a change has occurred. Form ADVs being reviewed by investors that are close to a year old and have not been amended may contain stale information.
A manager must also determine whether the changes reflected in its amended Form ADV filed with the SEC will require updates to their fund’s offering documents. Maybe, maybe not. That’s a judgment call that a manager will have to make. Suffice it to say that nasty surprises can occur if an investment is made before a manager shares updated information with regulatory authorities and investors.
Be aware of these SEC deadlines. If a manager hasn’t updated its Form ADV and an investment is being contemplated during this 90-day amendment period, consider inquiring:
1) when the manager anticipates making its amended Form ADV filing;
2) whether the manager is currently aware of material changes that will be reflected in its future Form ADV filing; and
3) whether fund offering documents will also have to be updated to enable an investor to make an informed investment decision.