RIAs, are you ready for plain language in your Form ADV “brochure”?
Registered investment advisors, the Securities and Exchange Commission (SEC) wants you to communicate more clearly with your clients and prospects.
The way you write and share your Form ADV Part 2, commonly known as the “brochure,” will change under a new proposal by the SEC.
Here’s the part of greatest interest to advocates of better writing, as described in the SEC fact sheet:
“Under the new rules, advisers will have to provide new and prospective clients with narrative brochures that are organized in a consistent, uniform manner and that include plain English disclosures of the adviser’s business practices, fees, conflicts of interest, and disciplinary information.”
You can learn more of the details at “SEC Approves Disclosure Form Changes to Provide Investors Greater Information About Their Investment Advisers” on the SEC website.
Thank you, Philip Lawton of Stonehouse Consulting for bringing this to my attention!