The SEC recently amended the Investment Adviser’s Act of 1940 to add several new requirements to Form ADV reporting for Investment Advisers.

Form ADV now requires IAs who use social media platforms such as Twitter, Facebook, and LinkedIn to provide their adviser’s social media addresses and usage information. The SEC will not only use this data to help examiners prepare for their adviser examinations, but also to compare adviser information that is shared on different social media platforms.

Advisers must also disclose the total number of offices at which they conduct advisory business, in addition to divulging pertinent business details concerning their 25 largest offices, as determined by the number of employees.

Additionally, advisers who use outsourced chief compliance officers must provide information regarding who else employs or compensates these individuals. The SEC has observed a wide spectrum of both the quality and effectiveness of outsourced chief compliance officers. Therefore, the identifying information that is now required on Form ADV will help the SEC recognize all advisers who rely on a particular outside compliance officer, which could be helpful in assessing potential risks or patterns of non-compliance.