Alternatives investment managers “appear to be dragging their heels” in filing ADV forms, which means the SEC is expected to be flooded with the filings in late May and early June, according to a report from financial services regulatory compliance consultant ICS Compliance.
From Oct. 1 to Dec. 31, only 213 alternative investment managers have become approved investment advisers, from a universe of about 2,500 alternatives firms that must register under the Dodd-Frank Wall Street Reform and Consumer Protection Act, ICS Compliance noted in a news release.
Registration is due to the SEC by June 3. The SEC has 45 days to review the documents.
“Given that filings are averaging about 100 a month, we would expect the SEC to be flooded with new registrants come May of this year as managers rush to make the 45-day deadline,” Gary Swiman, president of ICS Compliance's Asset Management Group, said in the release.
Mr. Swiman said in a telephone interview that an SEC official said the agency is clearly facing a management challenge. “They are underestimating the filing and examination they will have to perform.”
