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Straight Talk

Compliance

By Lisa Roth
April 1, 2008
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The commitment to plain English in regulatory writings for investors is here to stay. Given the SEC's proposal on a plain-English online Form ADV 2 disclosure brochure, now is the time for advisors to brush up on their language skills. Tips for clear writing include:

  • Use short sentences. When in doubt, make two sentences.
  • Make active, definite statements. Instead of "a standard methodology for review is applied by the firm;" write "the firm applies a standard review."
  • Incorporate everyday words. For instance, instead of "hereinabove" or "aforementioned" use "earlier."
  • Avoid superlatives wherever possible. Modifiers like best and worst can be subject to interpretation or even dispute. The statement, "The firm uses email review technology successfully," is just as powerful as "The firm uses the best email review technology with great success."
  • Reduce phrases with superfluous words. For instance, use "if" rather than "in the event that" and "to" instead of "in order to."

Plain-English writing requires good discipline, but can be easily incorporated into a firm's written communications.

Lisa Roth is managing director of National Regulatory Services, a division of SourceMedia.