Disclosures

What this video covers

• The difference between an investment adviser's affirmative fiduciary duty of full and fair disclosure and a broker-dealer's narrower antifraud standard tied to specific transactions
• Why omitting a material fact is legally equivalent to making a false statement, and why fraud does not require an actual lie
• The five mandatory disclosure categories: fees and compensation, conflicts of interest, disciplinary history, investment risks, and financial condition
• Form ADV Part 2A as the plain-English narrative brochure for clients versus Part 1 as the fill-in-the-blank regulatory form, including the 18 core items plus Item 19 for state-registered advisers
• The two-branch initial delivery rule: at least 48 hours before contracting, or at the time of contracting with a penalty-free 5-business-day right to terminate
• The 90-day regulatory filing deadline versus the 120-day client delivery deadline for annual amendments, and when no material changes relieves the adviser from annual client delivery
• The 10-year presumption of materiality for disciplinary events in Form ADV Part 2A Item 9, and why it is a presumption rather than a hard cutoff