On July 21, 2010, the SEC voted unanimously to adopt amendments (the “Amendments”) to Part 2 of Form ADV, the part of the registration form for registered investment advisers commonly referred to as the “brochure,” which is delivered to adviser clients. The Amendments complete an overhaul of Form ADV that began in 2000 with the adoption of changes to Form ADV Part 1. In general, the Amendments replace Part 2’s existing check-the-box, fill-in-the-blank approach with a narrative brochure that addresses specified topics in plain English. An adviser must also provide “brochure supplements” to clients containing information about the specific personnel who will be providing them with advisory services. Investment advisers will be required to file their brochures electronically with the SEC, which will make them publicly available on its website. The SEC expects most advisers will begin using amended Form ADV Part 2 in the first quarter of 2011. The Amendments will be described in further detail in a subsequent Alert after the SEC issues the formal release describing the Amendments.
Alert July 27, 2010