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D. Bruce Johnston

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RIA Forum on SEC Form ADV Part 2 Launched

DBJ Associates Launches RIA Forum on SEC Form ADV Part 2 on LinkedIn

What is 174 pages, calls for two sub-parts, one part calling for 18 different disclosures, and will take firms 15 to 60 hours to complete with cost estimates ranging from $3,000 to $10,000?

It's nothing less than the Securities and Exchange Commission's Form ADV Part 2.

Emerging from the confusion surrounding the new rule, two things are certain:

  • Both state-registered and SEC registered advisors will have to fill out the new ADV form Part 2
  • The form is no longer a check-the-box exercise and requires strict adherence to a plain English standard

Tripping over the details
Yes, Part 2A requires narrative brochures about an advisory firm and Part 2B requires brochure supplements containing information about certain supervised persons. How is all of this supposed to be written in plain English under such a short deadline?

Though challenging, there are several sources available for guidance. Readers of RIABiz can access recent articles by Brooke Southall and Les Abromovitz, which provide practical suggestions on how one should handle various aspects of the New Form ADV Part Two.

Investment News reporter Lisa Shidler addressed RIA concerns in her article "New Form ADV-2 adding costs, confusion" detailing important sources of advisor frustrations.

Looking for answers
Advisers have a chance to listen to an overview of the new Form ADV Part 2 sponsored by Huntington Asset Services on December 1, 2010.  The webinar will include a discussion of plain English, as well as practical drafting tips, and delivery, filing and updating requirements. The webinar is available at no cost.

Although fraught with challenge, a well-written brochure can also become an effective and compliant marketing tool to serve as the foundation for a firm's future marketing initiatives. That is why advisors should learn as much as they can about the ADV Part 2 requirements and seek out trusted experts for assistance. Financial writers like John Drachman and others have extensive experience in crafting plain English narratives for an RIA's products and services.

Also, to facilitate and guide the discussions about the new rule, DBJ Associates recently launched RIA Forum on SEC Form ADV Part 2. Interested readers are invited to join the group and weigh in.

More Stories By D. Bruce Johnston

D. Bruce Johnston, President | COO, CaptureTrackConvert is regarded as a high-energy, results-driven Financial Services Distribution Executive. His 30+-year career has been distinguished by an impressive record of accomplishments, contributions and winner of the Institutional Investor Fund Marketer of the Year award. CaptureTrackConvert (CTC) provides easy to use, powerful enterprise level marketing automation software to fast growing SMBs. CTC is dedicated to helping SMBs maximize their marketing resources, improve the effectiveness of their marketing campaigns and generating more sales ready prospects thus dramatically improving sales and the bottom-line.