Many Registered Investment Advisers (RIAs) are familiar with various regulatory filing requirements. However, a relatively new one, Form NPX, is crucial for RIAs that vote client securities (even if they don't advise private funds). Understanding this requirement and ensuring compliance is essential for all RIAs that engage in voting client securities.
What is Form NPX in this Context?
For RIAs that vote client securities, Form NPX is a filing that mandates the reporting of how certain of those voting rights were exercised. This filing is part of the SEC's ongoing effort to increase transparency and accountability in the proxy voting process. It aims to provide greater insight into how investment advisers are voting on behalf of their clients. Even if your RIA does not manage private funds, this requirement may apply if you exercise voting authority.
Who Needs to File Form NPX (for RIAs Voting Securities)?
If your RIA exercises voting authority over client securities, you will likely be required to file Form NPX. This includes voting on matters such as board elections, mergers, and other corporate actions. It's essential to determine if you are acting in a capacity that triggers this filing requirement. If you have any questions, consulting with a compliance expert is highly recommended.
How to File Form NPX
Form NPX filings are submitted electronically through the Investment Adviser Registration Depository (IARD) system. The process involves:
- Accessing the IARD System: Ensure you have the necessary credentials to access the IARD system.
- Locating Form NPX: Navigate to the section for Form NPX filings within the system.
- Completing the Form: Provide detailed information about how voting rights were exercised for each client. This includes the specific voting decisions made and the reasons behind them. Ensure accuracy and completeness in all fields.
- Submitting the Form: Submit the completed form electronically through the IARD system.
- Record Keeping: Maintain records of all filings and supporting documentation to ensure compliance.
When to File Form NPX
Generally, RIAs that vote client securities are required to file Form NPX annually. Staying up-to-date with the SEC's guidance and deadlines is critical to ensure timely filing and avoid potential penalties. It is prudent to regularly check the official SEC website or consult with compliance experts.
Need Help with Form NPX Compliance?
Navigating the intricacies of Form NPX, especially as it relates to voting client securities, can be complex. Arcturus Advisory is here to support you. We can:
- Clarify whether Form NPX is required for your RIA.
- Provide guidance on the specific information to include in your filing.
- Assist with the electronic filing process through the IARD system.
- Ensure you are meeting all compliance obligations related to Form NPX.
Don't leave your Form NPX compliance to chance.
#Arcturus Advisory: Your Compliance Archetype.
