Poll: Is the SEC’s plain language requirement for Form ADV Part 2 a good idea?

November 7, 2010/in client communication, compliance, financial topics, marketing, SEC, writing/by Susan Weiner, CFA

SEC-registered advisors must rewrite Part 2 of their Form ADV using plain language. The requirement takes effect in 2011.

You won’t be surprised to learn that I favor plain language, but I’m curious to know what you think of the new requirement.

Please answer the poll in the right-hand column of my blog, asking “What do you think of the plain language requirement for Form ADV Part 2?”

Bad idea
Okay, but will cost too much time and money
Good idea, but I’m not sure if it’ll be implemented effectively
Great idea, I’m looking forward to it
None of the above (please leave a comment)

By the way, the SEC’s plain English handbook is a great resource for your Form ADV rewrite, as Deborah Bosley and Libby Dubick point out in “Lemonade from legislative lemons: New ‘plain language’ rules for Form ADV give advisors a chance to stand out.” Investment News (Oct. 4, 2010, registration required).