SEC to redesign Form ADV Part 2News added by ProWEB Media on July 22, 2010
Gary Linnell

ProWEB Media

Joined: December 27, 2005

The Securities and Exchange Commission (SEC) this week unanimously adopted rules to redesign Form ADV Part 2, the primary disclosure document provided by advisors to their clients.

While many believe the redesign will be a major step in assisting consumers who are searching for an advisor, others are concerned with the advisors' decisions about how much information to reveal.

The new rules would require advisors to provide prospects and clients with a brochure containing information on 18 separate areas of their practices before engagement contracts are signed. In addition, advisors would be required to provide the SEC with occasional updates of the information for public viewing on the SEC's Web site.

Many advisor groups contend that the new narrative form will be easier for investors to decipher than the check-the-box format used previously.
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