SEC OKs Revised Advisor Form

Members of the U.S. Securities and Exchange Commission voted unanimously Wednesday to change the official “brochure” that SEC-registered investment advisors must give to clients and prospects.

The document–Form ADV, Part 2 –gives an investor information about an investment advisor’s qualifications, investment strategies and business practices.

The current version of the brochure requires advisors to answer multiple-choice and fill-in-the-blank questions organized in a “check-the-box” format.

The amendments adopted by the SEC will require advisors to give more information about compensation and potential conflicts of interest, and firms will start using resume-like brochure “supplements” to tell clients about the individuals who will be serving them, officials say.