2025-06122Notice

SEC Extends Adviser Brochure Delivery Requirement

Published Date: 4/10/2025

Notice

Summary

The SEC wants to keep Rule 204-3, which makes investment advisers share important brochures with their clients at the start and every year after. This helps clients know what they’re signing up for and keeps advisers honest. About 15,464 advisers spend around 4 hours a year on this, and the SEC is asking for comments before extending the rule’s approval.

Analyzed Economic Effects

2 provisions identified: 1 benefits, 1 costs, 0 mixed.

Compliance Burden on Registered Advisers

If you are a registered investment adviser, you must deliver a brochure at the start of an advisory relationship and annually thereafter, and provide amended brochures when disciplinary information becomes materially inaccurate. The SEC estimates there were 15,464 advisers as of March 31, 2024, that each spend about 4.04 hours per year complying, for a total estimated annual burden of 62,525 hours.

Client Access to Adviser Disclosures

You (clients and prospective clients) receive an investment adviser's brochure at the start of the relationship and annually afterward, and advisers must provide amended brochures or a statement when disciplinary information becomes materially inaccurate. The brochure is intended to help you decide whether to retain or continue employing the adviser.

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Key Dates

Published Date
4/10/2025

Department and Agencies

Department
Independent Agency
Agency
Securities and Exchange Commission
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