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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.
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