Laws & RegulationsQuestion 13 of 100
Under the Investment Advisers Act, an adviser's brochure (Form ADV Part 2) must be delivered to a client:
a.Only after the client complains
b.Never, because Form ADV is confidential
c.At or before entering into the advisory agreement, with annual updates offered
d.Only to institutional clients
Explanation
The brochure rule requires delivery of Form ADV Part 2 at or before entering into the advisory contract, with an annual delivery or offer of an updated brochure. This ensures clients receive material disclosures about the adviser's business, fees, and conflicts. It is a cornerstone of the fiduciary disclosure framework.
Law Reference: Investment Advisers Act of 1940Practice all 100 questions free — no signup required.
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