If you’re a registered investment advisor, get ready to disclose more information on your Form ADV, Part 2 and to use plain English. That’s because the Securities and Exchange Commission recently voted to adopt changes to the principal disclosure document that advisors provide to clients and prospective clients.
The brochure in its current format requires advisers to respond to a series of multiple-choice and fill-
in-the-blank questions organized in a check-the-box format that frequently does not correspond well to an advisor’s business. In some cases, the required disclosure may not describe the advisor’s business
or conflicts in a way that is truly accessible to the investor.