Brochure Rule

Filed Under » ,
Dictionary Says

Definition of 'Brochure Rule'

Under the Investment Advisor's Act of 1940, the Brochure Rule requires federally registered investment advisors provide a written disclosure statement to their clients at specified times during the advisory process.
Investopedia Says

Investopedia explains 'Brochure Rule'

There are two ways in which an advisor can satisfy the rule:
1) the advisor can provide such disclosure by giving the client Part II of Form ADV.
2) the advisor can provide an actual brochure that contains the same information that would be found in Part II of Form ADV.

The disclosure statement includes information such as the advisor's business practices, educational background, services and fees, third-party compensation (if any), any broker-dealer affiliations, any legal/disciplinary actions against the investment advisor in last 10 years, and any financial conditions that could impair their ability to meet client commitments.

Articles Of Interest

  1.

    Introduction To Treasury Inflation-Protected Securities (TIPS)

    If you want to protect your portfolio from inflation, all you need are a few TIPS.

  2. 6 Asset Allocation Strategies That Work

    Your portfolio's asset mix is a key factor in whether it's profitable. Find out how to get this delicate balance right.

  3. A Top-Down Approach To Investing

    Use a global view to determine which stocks belong in your portfolio.

  4. How Risk Free Is The Risk-Free Rate Of Return?

    This rate is rarely questioned - unless the economy falls into disarray.

  5. Top 4 Most Scandalous Insider Trading Debacles

    Here we look at some of the landmark incidents of insider trading.

  6. Handcuffs And Smoking Guns: The Criminal Elements Of Wall Street

    From godfathers to perps, familiarize yourself with the "criminal elements" creeping around Wall Street.

  7. Investing With A Purpose

    Your reasons for investing are bound to change as you go through the ups and downs of life. Setting goals is the first step in determining which investment vehicles are right for you.

  8. Think Like Warren Buffett

    They don't call him "The Oracle" for nothing. Learn how Buffett comes up with his winning picks.

  9. Defining Illegal Insider Trading

    The better you understand why insider trading can be criminal, the better you'll understand how the market works.

  10. Investors: You Are Responsible For Your Investments

    Should you leave it all up to your broker or take the reins yourself? Striking a happy medium will provide the best returns.
comments powered by Disqus
Marketplace
Hot Definitions

  1. Racketeering

    Racketeering refers to criminal activity that is performed to benefit an organization such as a crime syndicate. Examples of racketeering activity include...

  2. Lawful Money

    Any form of currency issued by the United States Treasury and not the Federal Reserve System, including gold and silver coins, Treasury notes, and Treasury bonds. Lawful money stands in contrast to fiat money, to which the government assigns value although it has no intrinsic value of its own and is not backed by reserves.

  3. Fast Market Rule

    A rule in the United Kingdom that permits market makers to trade outside quoted ranges, when an exchange determines that market movements are so sharp that quotes cannot be kept current.

  4. Absorption Rate

    The rate at which available homes are sold in a specific real estate market during a given time period.

  5. Yellow Sheets

    A United States bulletin that provides updated bid and ask prices as well as other information on over-the-counter (OTC) corporate bonds...

  6. Bailment

    The contractual transfer of possession of assets or property for a specific objective.
Trading Center