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AMENDED NOTICE TO INVESTMENT ADVISERS RE: FORM CRS

 

The SEC has implemented the Form CRS as Part 3 of the Form ADV. Pursuant to Section 1-406 of the Oklahoma Uniform Securities Act of 2004 (“OUSA”) and 660:11-7-11 and 660:11-7-20 of the Rules of the Oklahoma Securities Commission and the Administrator of the Department of Securities (“Rules”), entities registering or registered as investment advisers under the Act must file the Form CRS Relationship Summary as a part of the Form ADV filing requirement. The SEC has mandated that investment advisers registered federally must file before June 30, 2020. Oklahoma-registered investment advisers should meet this same deadline.

The Department has learned that currently the functionality of the IARD through which SEC-registered investment advisers are to file the Form CRS does not give access to state-registered IAs to file such form in the same way (unless they are dually registered). Therefore, Oklahoma-registered IAs are directed to file the Form CRS through the IARD by clearly labeling it as “Form CRS” and attaching it as an upload under Part 2 of the Form ADV.

Also, although the Rules do not explicitly require the delivery of the Form CRS to clients, as a fiduciary, an investment adviser is obligated to ensure that clients understand the capacity in which it is functioning. Since this is the whole purpose of the form, delivering the Form CRS to clients will now be a best practice for Oklahoma-registered investment advisers. Such delivery would particularly be true for dually-registered firms and their representatives. The SEC has mandated that delivery should occur within 30 days of a firm filing its Form CRS. It would be a best practice for Oklahoma-registered investment advisers to deliver the Form CRS within 30 days of a firm filing its Form CRS.

If the SEC should provide relief for investment advisers in the form of extending its deadlines, Oklahoma-registered investment advisers can rely on the same extension(s) of any corresponding deadline(s).