SEC Votes to Propose Amendments to Part 2 of Form ADV (Finally)

At an open meeting yesterday, the Securities and Exchange Commission (SEC) voted unanimously to seek public comment on proposed amendments to Part 2 of Form ADV, the investment adviser registration form. The amendments are designed to provide clients with narrative brochures containing plain English descriptions of an investment adviser’s business, services, and conflicts of interest. The proposed changes also would require advisers to file their brochures electronically, and the brochures would be available to the public through the SEC’s website.

The SEC had originally proposed amendments to Part 2 of Form ADV on April 5, 2000. However, those amendments were never adopted, and the industry has long been anticipating the SEC’s new proposal.

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