Sometimes regulatory changes that are meant to benefit investors end up taxing industry professionals. That does not appear to be the case with the Securities and Exchange Commission’s new requirements for Form ADV, Part 2. 

On Wednesday the SEC decided to revamp the document’s format, doing away with fill-in-the blank questions organized in a check-the-box setup. Known as the “brochure”, Form ADV, Part 2 describes the firm’s investment strategies, business practices and advisor qualifications. All investment advisory firms that manage more than $25 million in assets file with the form with the SEC. (After financial reform laws are implemented, that threshold will go up to $100 million, in most cases.)

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