Glossary term
Form ADV Part 2B - Brochure Supplement
Form ADV Part 2B is a brochure supplement with background information about specific adviser personnel who provide advice to clients.
Updated
Read time
What Is Form ADV Part 2B?
Form ADV Part 2B is the brochure supplement for an investment adviser. It gives background information about certain supervised people who provide advisory services to a client, such as an individual adviser, portfolio manager, or financial planner.
Part 2B is personal to the people delivering advice. While Part 2A explains the advisory firm, Part 2B helps a client understand the qualifications, business activities, compensation, and disciplinary history of the individual or team member involved in the relationship.
Key Takeaways
- Form ADV Part 2B is called the brochure supplement.
- It focuses on advisory personnel rather than the firm as a whole.
- It can include education, business background, disciplinary events, outside activities, and compensation information.
- Clients can use it alongside Part 2A, Form CRS, and IAPD records when evaluating an adviser.
How Part 2B Works
Investment advisers prepare Part 2B supplements for supervised persons when required by Form ADV instructions. The supplement is intended to help clients understand who is actually giving advice or making decisions for their accounts.
That distinction matters because a strong firm brand does not tell the whole story. The person a client works with may have specific credentials, outside business activities, compensation incentives, or disciplinary disclosures that deserve attention. A client may receive more than one supplement if multiple supervised people provide advice.
What the Supplement May Cover
Topic | Why it matters |
|---|---|
Education and business background | Shows experience and professional history. |
Disciplinary information | Flags events that may require follow-up questions. |
Other business activities | Can reveal time commitments or conflicts outside the advisory role. |
Compensation and supervision | Helps explain incentives and oversight. |
How to Use It
Part 2B is most useful when a client compares it with what they have been told in conversation. If the adviser says they specialize in retirement planning, the supplement can help show relevant background. If the adviser also sells insurance, manages outside business interests, or has reportable history, the supplement can help frame better questions.
The document does not replace due diligence. Clients should also check IAPD or BrokerCheck when appropriate, read the firm brochure, review the advisory agreement, and ask direct questions about fees, conflicts, supervision, and who will actually make recommendations or portfolio decisions.
The Bottom Line
Form ADV Part 2B helps clients look past the firm name and understand the people providing advice. It is a practical disclosure for reviewing experience, incentives, outside activities, and disciplinary history.