Form ADV Part 2 Brochure and Brochure Supplement. In October 2010, the SEC adopted a new approach to the Form ADV Part II and Schedule F, which was more of a check-the-box format. The new approach is intended to be a narrative plain English brochure that describes the registered investment advisor’s business, conflicts of interest, disciplinary history, affiliations with other entities and other important information. This information is intended to help clients make an informed decision about whether to retain that registered investment advisor.
When the SEC adopted the new plain English Form ADV Part 2 Brochure, they adopted it to include two sub-parts, Part 2A and Part 2B. Form ADV Part 2A contains 19 disclosure items about the advisory firm that must be included in the investment advisor’s brochure. The Form ADV Part 2B is referred to as the Brochure Supplement, which includes information about certain advisory personnel for whom clients rely for investment advice.
It has been more than seven years since the SEC adopted this new approach for registered investment advisors, however, I have recently become aware that there are still some RIA firms that have not yet transitioned over to this new format. For more information on the requirements of the Form ADV Part 2 Brochure and Brochure Supplement, click here, for the final SEC rule.
RIA firms that need assistance creating a Form ADV Part 2 Brochure and Brochure Supplement, contract Registered Advisor Services today for a free consultation!
