When does an RIA need to file a Form 13F with the SEC?

Understanding Form 13F and when you're required to file it
February 20, 2024
Thomas Stewart, Founder & CEO
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SEC compliance is vital for Registered Investment Advisors (RIAs) to maintain credibility and avoid penalties. One essential component of compliance is filing Form 13F, a quarterly report submitted by institutional investment managers. Hadrius, an AI-powered software suite, provides efficient SEC and FINRA compliance solutions for RIAs, making this process more manageable and accurate.

What is Form 13F?

Form 13F is a quarterly report filed with the Securities and Exchange Commission (SEC) by institutional investment managers. It serves to provide transparency into their investment activities, specifically their holdings of certain types of securities. By filing Form 13F, these managers disclose their equity holdings, which allows the SEC to monitor and regulate the investment landscape effectively.

There are various types of securities reported on Form 13F, including equities, options, convertible debt securities, and shares of closed-end investment companies. The form does not cover all types of securities; for instance, it excludes holdings in mutual funds, exchange-traded funds (ETFs), and certain types of debt instruments.

The primary purpose of Form 13F is to help the SEC monitor the investment activities of institutional investment managers. By requiring the disclosure of their holdings, the SEC can ensure the proper functioning of the financial market and detect any potential irregularities. Additionally, Form 13F promotes transparency, enabling investors to make informed decisions based on the disclosed information.

Criteria for Filing Form 13F

Understanding the criteria for filing Form 13F is crucial for institutional investment managers, as it helps them stay compliant with SEC regulations. There are specific requirements, thresholds, and deadlines that managers must meet to ensure proper filing.

Firstly, it's essential to identify who qualifies as an institutional investment manager. These are entities that exercise investment discretion over accounts holding certain equity securities, such as banks, insurance companies, investment advisors, and broker-dealers. In addition, the manager must have investment discretion over accounts holding securities with a total market value of at least $100 million. This figure is calculated by aggregating the market value of all securities under the manager's discretion at the end of each calendar quarter.

Once an institutional investment manager meets the $100 million threshold, they are required to file Form 13F. The filing frequency is quarterly, and the deadlines for submission are 45 days after the end of each calendar quarter. This means that managers must file the form by February 14th (for the fourth quarter), May 15th (for the first quarter), August 14th (for the second quarter), and November 14th (for the third quarter). It's crucial for managers to adhere to these deadlines to avoid penalties and maintain compliance with SEC regulations.

Filing Form 13F: The Process

Filing Form 13F can be a complex process, especially for those who are new to it or who manage a large number of securities. Understanding the steps to complete and submit the form, recognizing potential challenges, and leveraging tools like Hadrius to streamline and simplify the filing process can help ensure compliance and avoid unnecessary delays or penalties.

When completing Form 13F, institutional investment managers should begin by gathering all necessary information about the securities under their discretion, including the issuer's name, class of security, CUSIP number, and the number and value of shares held. Once this data has been collected, managers should carefully fill out the form, ensuring that all fields are completed accurately and thoroughly.

As with any regulatory filing, there can be potential challenges and issues in the Form 13F filing process. These may include incomplete or inaccurate information, missed deadlines, or misunderstandings of the reporting requirements. To minimize these risks, it's essential to stay up-to-date with the latest regulatory changes, consult with compliance professionals, and use reliable software solutions to manage the process effectively.

Harnessing the power of Hadrius can greatly benefit institutional investment managers in their Form 13F filing process. The AI-powered software suite offers a streamlined approach to compliance, with features that help managers consolidate all their compliance vendors, resulting in cost savings, simplified workflows, and comprehensive coverage of all compliance needs. By using Hadrius for Form 13F filing, managers can ensure accuracy and efficiency while reducing the time and resources spent on this critical task.

Benefits of Using Hadrius for Form 13F Filing

Institutional investment managers can significantly benefit from using Hadrius in their Form 13F filing process. The AI-powered software suite offers numerous advantages, including time and cost savings, enhanced accuracy and efficiency, and comprehensive coverage of all compliance needs.

One of the most compelling reasons to use Hadrius is the time and cost savings it provides. Clients who have chosen Hadrius for their compliance needs have experienced an average annual compliance savings of $33.2k+ and saved an average of 7.5 hours per week. These savings result from the platform's ability to consolidate all compliance vendors, leading to simplified workflows and reduced costs.

Harnessing the power of AI technology, Hadrius ensures enhanced accuracy and efficiency in the Form 13F filing process. Advanced algorithms monitor and flag electronic communications, provide automated compliance recommendations, and streamline employee onboarding. This automation not only reduces the likelihood of errors but also enables managers to focus their attention on other critical aspects of their business.

Lastly, Hadrius offers comprehensive coverage of all compliance needs, making it an all-in-one solution for RIAs and broker-dealers. Its features include communication and marketing review and archiving, trade monitoring, attestations and disclosures, task management, and white-glove support. By providing a single platform that addresses every aspect of compliance, Hadrius ensures that institutional investment managers can stay compliant with SEC regulations confidently and efficiently.

Additional Compliance Features of Hadrius

Beyond its impressive capabilities in streamlining the Form 13F filing process, Hadrius offers a range of additional features to ensure comprehensive compliance for RIAs and broker-dealers. These features encompass aspects such as communications and marketing review and archiving, trade monitoring and attestations and disclosures, as well as task management and vendor due diligence.

One essential component of compliance is managing and archiving communications and marketing materials. Hadrius simplifies this process by providing a centralized platform for reviewing and archiving electronic communications, ensuring that all relevant materials are easily accessible and compliant with SEC and FINRA regulations.

Trade monitoring is another critical aspect of compliance. Hadrius' advanced AI algorithms help investment managers stay on top of their trading activities, ensuring timely and accurate reporting of any issues. In addition, the platform offers robust attestations and disclosure features, enabling RIAs and broker-dealers to report political contributions, gifts, outside business activity, and updates to the Code of Ethics and Compliance manual.

Task management is crucial for maintaining a well-organized and efficient compliance program. Hadrius provides a suite of tools for managing compliance tasks, including compliance calendaring, form automations, and vendor due diligence, all of which can be customized to meet each firm's specific needs. By using Hadrius for task management, RIAs and broker-dealers can ensure that their compliance processes are streamlined and effective, ultimately minimizing the risk of penalties or sanctions.

Discover Compliance Success

Staying compliant with SEC regulations is crucial for the success of RIAs and broker-dealers. Hadrius, an AI-powered software suite, offers comprehensive and accurate compliance solutions, simplifying tasks like Form 13F filing. With features like communication review, trade monitoring, and task management, Hadrius ensures efficiency and cost savings for its clients. Experience the advantages of using Hadrius for your compliance needs by scheduling a demo of the most advanced compliance software today.

Thomas Stewart

Founder & CEO, Hadrius

Thomas Stewart is the founder and CEO of Hadrius, the most modern SEC and FINRA compliance software around. Thomas previously founded the SEC-registered RIA Quantbase where he learned first hand how to build an efficient compliance program that scales with high-growth firms.

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