Securities and Exchange Commission proposes sweeping changes to investment adviser brochure

On Feb 13, 2008, the Securities and Exchange Commission reproposed amendments to Form ADV Part II and related rules under the Investment Advisers Act of 1940, as amended. The Proposal would significantly alter the manner and form in which investment advisers registered with the Commission disclose i...

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Bibliographic Details
Published in:The Investment Lawyer 2008-05, Vol.15 (5), p.1
Main Authors: Kirsch, Clifford E, Koffler, Michael B, Strench, Bibb L, White, Timothy J
Format: Article
Language:English
Subjects:
Amendments
Brochures
Compliance
Conflicts of interest
Consultants
Disclosure
Disclosure (Securities law)
Fees & charges
Investment Advisers Act 1940-US
Investment advisors
Prepayments
Proposals
Scandals
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Summary:On Feb 13, 2008, the Securities and Exchange Commission reproposed amendments to Form ADV Part II and related rules under the Investment Advisers Act of 1940, as amended. The Proposal would significantly alter the manner and form in which investment advisers registered with the Commission disclose information about their operations to clients and prospective clients. Two new disclosure documents would be created under the Proposal: a brochure and a brochure supplement. The depth of changes set forth in the Proposal would require investment advisers to dedicate substantial resources and time to fully understand and implement the new requirements. Advisers may find it burdensome to comply with the 19 disclosure items proposed for the Brochure or those items that must be disclosed for advisory personnel in the Supplement. Some investment advisers have already expressed frustration about the lack of clarity for certain proposed disclosure items and uncertainty as to the level of detail expected by the Commission.
ISSN:1075-4512