As you know by now, the SEC has adopted a new Form ADV, Part 2 – Uniform Requirements for Investment Adviser Brochure and Brochure Supplements. This new form generally must be used in 2011; however, some regulators may accept the new form in 2010. Part 2 is an important disclosure document, because it includes the information that must be provided to clients and prospective clients.
The new Part 2 and the related instructions can be found on the SEC website.
On October 17, 2010, Investment News published a good article on the new Part 2. It is titled, “New Form ADV-2 adding costs, confusion.”
The new Part 2 is not to be taken lightly. Every investment adviser should gather the resources needed to timely and completely prepare this disclosure document and should start the process of preparing its new Part 2 as early as possible.
