To: All Investment Advisers

Re: Amended Part 2 of Form ADV

IMPORTANT! Amended ADV Part 2 is available for use as of October 12, 2010, and must be used as of January 1, 2011.

On July 28, 2010, the Securities and Exchange Commission (SEC) released a revised Form ADV (SEC Release No. IA-3060; File S7-10-00). The release primarily adopted amendments to Part 2 of Form ADV (also referred to as brochure or new Part 2). The new Part 2, with instructions, can be found on the SEC's website or on the North American Securities Administrators Association (NASAA) website.

The amendment changes the format of Part 2 from a check-the-box form to a narrative brochure written in plain English. The change is designed to provide prospective clients and current clients with a clearly written, meaningful, current disclosure of the business practices; conflicts of interest; and background of the investment adviser and its advisory representatives. The brochure is required to be prepared in plain English and to be filed electronically through the Investment Adviser Registration Depository (IARD).

The new Part 2 of Form ADV consists of three parts: Part 2A, Firm Brochure; Part 2A Appendix 1, Wrap Fee Program Brochure; and Part 2B, Brochure Supplement. Only investment advisers who provide wrap fee programs are required to submit the Part 2A Appendix 1, Wrap Fee Program Brochure.

The Division of Finance and Corporate Securities accepts the new Part 2 of Form ADV, effective October 12, 2010. Compliance dates are as follows:

• As of January 1, 2011, all new investment adviser applicants will have to file through the IARD the new Part 2 of Form ADV as part of their application.
• As of January 1, 2011, all licensed investment advisers will need to incorporate the new Part 2 of Form ADV with their next filing of an amendment to Form ADV, or their annual updating amendment to Form ADV.
• Between October 12, 2010 and January 1, 2011, applicants and currently licensed investment advisers filing amendments to their Part II of Form ADV may use either the current Part II or the new Part 2.
• The Division recommends that all investment advisers become familiar with the new Part 2 of Form ADV and amend their Form ADV using the new Part 2 as soon as possible.

Please note that all investment advisers are required to file their annual updating amendments to Form ADV (Parts 1 and 2) with their annual renewal and within 30 days of any material change.

Please contact the Division with questions by email or by phone at (503)-378-4387. Please review the Division's website for further developments.