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