Under the “Brochure” rule of the Investment Advisers Act of 1940, which of these statements is true?

By Investopedia AAA
A:

Under the "Brochure" rule of the Investment Advisers Act of 1940, which of these statements is true?



a. The ADV Part II or similar brochure must be offered to existing clients annually.
b. The ADV Part II or similar brochure must be given to existing clients annually.
c. The ADV Part II or similar brochure must be given to existing clients quarterly.
d. The ADV Part II or similar brochure must be given to existing clients semi-annually.




The correct answer is "a" – the brochure must be offered to existing clients once a year, but the IA is not required to send it to clients who decline a copy.



RELATED FAQS

  1. How do I find a good personal bankruptcy lawyer?

    Read how to find a good personal bankruptcy lawyer, and learn how much you can expect to pay for services if you are considering ...
  2. What are unregistered securities or stocks?

    Before securities, like stocks, bonds and notes, can be offered for sale to the public, they first must be registered with ...
  3. How does FINRA differ from the SEC?

    With all the financial organizations out there, knowing what they all do can be as complicated as knowing where to invest. ...
  4. What is the Dodd-Frank Act? How does it affect me?

    The Dodd-Frank Wall Street Reform and Consumer Protection Act is a massive piece of financial reform legislation passed by ...
RELATED TERMS
  1. Occupational Safety And Health Act

    Law passed in 1970 to encourage safer workplace conditions in ...
  2. Administrative Order On Consent (AOC)

    An agreement between an individual or business and a regulatory ...
  3. Licensed For Reinsurance Only

    A license that allows a company to engage in services related ...
  4. Plant Patent

    An intellectual property right that protects a new and unique ...
  5. Patent Agent

    A professional licensed by the United States Patent and Trademark ...
  6. Appraised Equity Capital

    The excess of the market value of an asset over its book value. ...

You May Also Like

Related Articles
  1. You may owe money, but you still have rights. There's a long list of things debt collectors are banned from doing to you. Know what's illegal.
    Credit & Loans

    5 Things Debt Collectors Can't Do To ...

  2. Sounds like a bad horror movie, but it really could happen to you. Here's how to identify zombie debt and send collectors back to the dead-debt graveyard.
    Credit & Loans

    How To Beat Off A Zombie Debt Collector

  3. Understanding how the debt collection business works will give you a better chance of coming out ahead if you ever have to tangle with a collection agent.
    Credit & Loans

    Inside Secrets Of The Debt Collection ...

  4. Investigate these expat havens if you seek a developed country with low barriers for getting a permanent resident visa – sometimes even citizenship.
    Personal Finance

    5 Developed Countries That Welcome Expats

  5. Two years into his first term, Mexican President Enrique Peña Nieto is following through on radical campaign promises he made to Mexican citizens for sweeping multi-industry reform.
    Investing News

    Mexicans Unsure about Mexican Reforms

Trading Center