What is a SEC Form ADV Part 2 Brochure? Sounds boring but it’s not. It’s an informative Client Brochure.

If you do business with or are considering doing business with a Registered Investment Advisor Firm (RIA), the RIA should give your their official Form ADV Part 2 Brochure.  It’s sometime referred to as the “Client Brochure”. You should read it.  It’s a plain language disclosure document that the RIA must submit to the Securities and Exchange Commission (SEC) annually.

Download Successful Portfolios October 2017 Client Brochure.

The SEC dictates what information must be included in a RIA’s Client Brochure.  Here’s a quick list of important items:

1. Description of Advisory Business Including Owners
2. Fees Charged and Compensation
3. Performance Based Fees and Side By Side Management
4. Types of Clients
5. Methods of Analysis, Investment Strategies, and Risk of Loss
6. Disciplinary Information
7. Other Financial Industry Activities and Affiliations
8. Code of Ethics, Participation, or Interest in Client Transactions and Personal Trading
9. Brokerage Practices
10. Review of Client Accounts
11. Client Referrals and Other Compensation
12. Custody of Client Assets
13. Investment Discretion
14. Voting of Client Securities
15. Financial Information Regarding the RIA
16. Supplemental Biographical Information Regarding RIA Representatives

Go here to access the SEC’s Investment Adviser Public Disclosure website.   You can download the Client Brochure for any RIA you chose.

SEC Adviser Search Website

About the Author:

Parker Evans, CFA, CFP, CMT is President of Successful Portfolios LLC, an SEC Registered Investment Advisor Firm based in Clearwater, FL. Parker helps individuals, families, and organizations plan and manage custom investment portfolios at leading brokerages including Charles Schwab, TD Ameritrade, and Interactive Brokers.