This two-part paper deals with necessary or sufficient conditions for
the existence of finite-dimensional filters. In the first part, we set
the problem and proposed a construction of finite-dimensional filters
by the Wei-Norman technique. In this second part, we shaw how geometr
ic-methods offer another approach that is more powerful, as we shall s
ee, The invariance group of a parabolic equation is introduced and its
action on initial data enhanced. This is applied to the problem of fi
nite-dimensional realization of bilinear stochastic PDEs and further s
implified by the introduction of a Riemannian framework. We end by an
analysis of partially observed systems having finite-dimensional filte
rs, with emphasis on the case of systems with correlated noise.