The Securities and Exchange Commission (SEC) amended Part 2 of Form ADV, which is the form that investment advisers use to register with the SEC and state securities authorities, and related rules under the Investment Advisers Act of 1940, on July 21, 2010. Form ADV consists of two parts, Part 1 and Part 2. Part 1 provides information to the SEC and other regulators for administrative purposes. Part 2, commonly referred to as the “brochure,” provides information to clients for disclosure purposes.
Part 2 was previously organized in a “check-the-box” format, which required advisers to respond to a series of multiple-choice and fill-in-the-blank questions. In early 2008, the SEC proposed replacing the “check-the-box” format with a plain English, narrative brochure describing the adviser’s business, conflicts of interest and background of the advisers and their personnel.
Click on the PDF link above to read the full publication.