Form ADV Part II Changes Approved by SEC

more+
less-

After years of speculation by investment advisers regarding when the proposed changes to the Form ADV Part II would be implemented, the Securities and Exchange Commission (SEC) unanimously adopted the proposed changes on July 21, 2010. The changes will clearly raise the bar on how disclosures will be made to investment advisory clients and will result in all investment advisers making major modifications to their existing Form ADV Part II by the end of the first quarter 2011.

Under the amended rule advisers will have to provide new and prospective clients with brochures that are organized in a consistent and uniform manner, and that contain expanded plain English disclosures of the adviser’s business practices, fees, conflicts of interest, and disciplinary information. Advisory firms must also provide “brochure supplements” to clients containing information about the employees who will provide the advisory services.

The implementation date of the amended rules and forms (the “Amended Rule”) will be effective 60 days after publication in the Federal Register. The SEC has postponed publication of the revised Form ADV, Part II until July 28th, 2010 in order to work with the states to accommodate technical, state-specific changes to the items and instructions on the form. However, the SEC made it clear that they intend for investment advisers to be distributing and publicly posting new brochures in the first quarter of 2011.

Daniel E. LeGaye, Author

LOADING PDF: If there are any problems, click here to download the file.


DISCLAIMER: Because of the generality of this update, the information provided herein may not be applicable in all situations and should not be acted upon without specific legal advice based on particular situations.

© Daniel LeGaye, The LeGaye Law Firm, PC | Attorney Advertising

Written by:

more+
less-

The LeGaye Law Firm, PC on:

JD Supra Readers' Choice 2016 Awards
Reporters on Deadline

"My best business intelligence, in one easy email…"

Your first step to building a free, personalized, morning email brief covering pertinent authors and topics on JD Supra:

Sign up to create your digest using LinkedIn*

*By using the service, you signify your acceptance of JD Supra's Privacy Policy.

Already signed up? Log in here

*With LinkedIn, you don't need to create a separate login to manage your free JD Supra account, and we can make suggestions based on your needs and interests. We will not post anything on LinkedIn in your name. Or, sign up using your email address.
×
Loading...
×
×