No-Action Relief Permits Subadviser to Deliver Form ADV to Primary Investment Adviser Pursuant to Rule 204-3 of the Investment Advisers Act

The SEC issued a No-Action Letter permitting a subadviser to deliver Form ADV Part 2 to an investment adviser with discretionary authority to manage a client's assets, or with authority to appoint one or more subadvisers to manage a client's assets, rather than requiring the subadviser to deliver Form ADV Part 2 directly to the end client. Such delivery is permitted where the client appoints the investment adviser to receive Form ADV Part 2 on the client's behalf, the client knows the identity of the subadviser, and the investment adviser has policies in place ensuring: adequate review of the brochure documents, adequate retention of the brochure documents, management of material conflicts with the subadviser, and fulfillment of the investment adviser's fiduciary obligations to the client.

Click here to view No-Action Letter (links externally to SEC website).Cross-Reference: Advisers Act Rule 204-3 (Delivery of Brochures and Brochure Supplements).