Insights for Effectively Disclosing Conflicts of Interest in Form ADV Part II
June 10, 2010
1:00 PM – 3:00 PM EST
Disclosure, disclosure, disclosure. You’ve heard it many times, but do you understand how to disclose your firm’s vital information to clients in ways that will withstand regulatory scrutiny? Expert instructors will systematically walk through Form ADV Part II and help you learn what the SEC wants you to disclose and why. In addition, learn procedures to help assure that information in your firm’s Form ADV Part II is consistent with Form ADV Part 1, marketing materials, and advisory agreements.
The SEC is now in the process of digesting the public comments that have been submitted in response to the proposed amendments to Part II. The long-anticipated amendments are designed to provide clients with narrative brochures containing plain English descriptions of an investment adviser’s business, services, and conflicts of interest. The proposed changes also would require advisers to file their brochures electronically, and the brochures would be available to the public through the IAPD website. Regardless of the outcome of this protracted rule-making process, it is clear that plain English disclosure of adviser conflicts of interest is a regulatory imperative that should command the attention of compliance professionals in the current regulatory environment. We'll take you past basic disclosure to an understanding and appreciation of what regulators mean when they talk about 'full and fair' disclosure. Your firm's Form ADV is a cornerstone of your firm’s fiduciary duty to its clients.
Instructors will focus on:
- Movement away from the current “check-the-box” format and related disclosure schedules to a free-form, plain English, narrative brochure.
- Enhanced conflicts of interest disclosure. Identifying conflicts of interest and enhanced disclosure about actual and potential conflicts of interest such as the use of affiliated brokers, soft dollars, side-by-side management of accounts that pay performance fees, and receipt of compensation from issuers of financial products the adviser recommends to clients.
- Providing insight and clarity into the information being sought in Form ADV Part II to ensure your firm is accurately reporting such information.
- Establish a team approach to develop and maintain a Form ADV Part II that complies with regulations and is consistent with your firm's Form ADV Part 1, policies and procedures, advisory contracts, client communications and advertising.
