ERA to SEC
Once the ERA manages $150 million or more in private fund assets, then the firm has ninety (90) days to apply for full registration as an RIA. However, this grace period is not available if the ERA no longer satisfies the other conditions of the relevant exemption. Thus, if the ERA plans to manage clients other than private funds, or intends to make non-qualifying investments, the adviser needs to apply for RIA registration immediately, unless the adviser meets another exemption.
Bates will review and/or draft various required documents for adherence to SEC rule(s) that include, but are not limited to:
- Form ADV 1
- Form ADV 2A & 2B
- Form U4(s)
- Compliance Manual
- Privacy Policy
- Form CRS, (needed as SEC Registrant)
In addition, the client will be able to leverage the knowledge of the Bate’s consultant to explain SEC-registered RIA obligations.
Once approved by the SEC, we recommend speaking a Bates consultant to inquire about additional services Bates can offer to help the ERA maintain compliance with various ongoing obligations. This can include, but it not limited to, assistance with your Annual Updating Amendment (“AUA”), your Form D filing requirements, other state specific requirements, modifications to offering documents and marketing materials, special considerations for ERISA investors, and annual bad actor certifications.
Please note that once the RIA is newly transitioned to the SEC, the RIA will likely undergo their first SEC Examination within 6-18 months from the approval date. This is a good time to talk to a Bates consultant about the additional requirements your RIA will be required to meet. Some requirements, such as the required Annual Review of compliance Policies and Procedures under Rule 206(4)-7, are all services provided by Bates Compliance.
