Part 2 of Form ADV Information Securities

The United States Securities and Exchange Commission (SEC) recently issued a final rule that makes significant changes to Part 2 (previously referred to as Part II) of Form ADV. Form ADV is the common form used by both state and federal regulators for the registration of investment advisers.

The SEC changes have transformed Part 2 from primarily a check the box style of document (with some additional narrative questions and supplemental narrative schedules), into a completely narrative format. There are three components to the new Part 2 which include:

The change in format is an attempt to improve the quality of information provided to consumers. Part of that change is also an embrace of the plain English style of writing. The SEC has developed a handbook on this writing style.

To assist investment advisers in making the transition over to the new Part 2 of Form ADV, the Illinois Securities Department has assembled information that firms will need in order to successfully devise a new document. Additionally, instructions for electronically filing Part 2 are also included below. Please read the instructions for each part carefully to ensure that all requirements are met. Also, please note that an answer for each Item listed must be supplied. If you deem that an item does not apply, please simply indicate as such in a brief narrative statement.

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The Secretary of State, Illinois Securities Department or their information providers shall not be liable regardless of the cause or duration, for any errors, inaccuracies, omissions or untimeliness of the information, or for any delay or interruption in the transmission thereof to the user, or for any claims or losses arising therefrom.