NRS' Webinar on Form ADV Part 2: Identifying and Disclosing Conflicts
In 2010, the SEC approved the new Form ADV Part 2, a "plain English" narrative approach to client disclosure, which was put into effect in 2011. The adopted rule changes require investment advisers to file their brochures electronically and the public has access to these brochures via the IAPD. This course will examine the forms 19 specific potential disclosure topics, including advisory business, fees and compensation, disciplinary events and brokerage practices. In addition, the panel will delve into the mechanics of the "brochure supplement" requirement, which is a résumé-like disclosure for each individual providing advice to a client.
Both SEC commissioners and staff emphasized the importance of meaningful, clear and useful disclosure, as well as the need for advisers to avoid legalese and boilerplate disclosures. Lessons learned from the past year using the new Form ADV Part 2 will be reviewed to gain further clarity into how to complete the narrative in a way that will withstand SEC scrutiny. Disclosure on the adviser's actual practices and conflicts, as well as on practices and conflicts reasonably likely to exist will be reviewed to highlight material facts concerning conflicts and address the requirement of how the adviser deals with them.
The session will also address:- How to identify conflicts of interest within the framework of Part 2- Guidance for disclosing conflicts of interest, compensation arrangements, fee structures, soft dollars arrangements and more- The implications of public access to your firms brochure on the Investment Adviser Public Disclosure (IAPD) website
After attending this course, attendees should be able to:- Identify the 19 specific disclosure topics of Form ADV Part 2- Further identify conflicts of interest within your firm- Apply plain English drafting techniques to the firms Form ADV Part 2
Paul Hastings partner Mitchell Nichter is a feature speaker for this webinar. For additional information and to register, visit the National Regulatory Services/Investment Adviser Association site