What Is Form ADV Part 2B?

Form ADV Part 2B, commonly referred to as the Brochure Supplement, is a disclosure document required by the U.S. Securities and Exchange Commission (SEC) and state securities regulators. It serves as an extension of the broader Form ADV Part 2A (the Firm Brochure) and focuses specifically on the qualifications, background, and disciplinary history of individual advisory personnel. These individuals are typically those who provide investment advice to clients or who have direct client contact.

While Form ADV Part 2A outlines the overall practices and policies of a registered investment advisor (RIA) firm, Part 2B shifts the attention to the professionals working within the firm. It aims to provide transparency into who is giving advice, their credentials, and whether they have any conflicts or past misconduct that could influence their advice.

Purpose and Regulatory Basis

The purpose of Form ADV Part 2B is to equip clients with meaningful information about the people responsible for managing their money or financial planning. Unlike advertisements or general firm materials, this supplement is a standardized regulatory filing. Its content requirements are governed by the Investment Advisers Act of 1940 and relevant state laws for state-registered firms.

The SEC and state regulators mandate this form to promote full and fair disclosure. Its intended audience is retail clients—those individuals who may not have the time, expertise, or resources to independently investigate the qualifications or past conduct of their advisor. By requiring firms to prepare and deliver a supplement for each relevant individual, regulators aim to create greater accountability and informed decision-making.

Required Information in the Brochure Supplement

The Brochure Supplement includes a set of prescribed disclosures, each aimed at addressing potential concerns or questions a client might have about their advisor. While the exact structure may vary slightly, the content must cover the following areas:

1. Educational Background and Business Experience:
The supplement must detail each advisor’s formal education and employment history for the past five years. This includes degrees, professional certifications, and roles at other firms or within the current firm.

2. Disciplinary Information:
Any legal or disciplinary events that are material to a client’s evaluation must be disclosed. This includes civil litigation, regulatory enforcement actions, or criminal charges that involve fraud, dishonesty, or unethical conduct. Even if an incident occurred many years ago, it must be included if it’s considered material.

3. Other Business Activities:
If the individual is engaged in other professional roles—such as being an insurance agent, accountant, or broker—those must be disclosed. The form should also clarify whether those roles create conflicts of interest and how those are addressed.

4. Additional Compensation:
The supplement must disclose if the individual receives compensation beyond their salary or share of client fees. For example, bonuses tied to product sales or commissions from third parties must be included.

5. Supervision:
This section identifies who supervises the individual and describes how that supervision is carried out. It should also include the supervisor’s contact information, allowing clients to follow up if they have concerns about their advisor’s conduct.

6. Professional Designations and Credentials:
If the advisor uses titles such as CFP®, CFA®, or CPA, the supplement must explain what those designations mean, how they are earned, and whether they require continuing education or ethical commitments. This section is meant to give context to credentials that might otherwise be unfamiliar to clients.

When and How It’s Delivered

Advisors must deliver the Brochure Supplement to clients before or at the time they enter into an advisory agreement. If there are material changes—such as a new disciplinary event, a change in outside business activities, or an updated credential—the supplement must be updated promptly and re-delivered when necessary.

Delivery can be electronic or in paper form, depending on the client’s preferences. The supplement is not filed with the SEC or states as a standalone document, but it must be made available to regulators upon request and maintained in the firm’s compliance records.

Importance for Clients and Compliance

For clients, the Brochure Supplement is one of the few places where they can find detailed, standardized information about the individuals advising them. Unlike firm websites or marketing brochures, this form is designed to present factual data in a consistent manner across advisors and firms. It provides a foundation for asking informed questions, verifying credentials, and understanding potential risks tied to working with a particular advisor.

For firms, maintaining accurate and current Brochure Supplements is a compliance obligation. Regulators may review these documents during routine examinations or investigations. Inadequate or outdated disclosures can result in fines, enforcement actions, or reputational harm.

The Bottom Line

Form ADV Part 2B plays a key role in regulatory transparency by focusing on the people—not just the firms—who deliver financial advice. It is designed to provide clients with essential background information on their advisor’s education, work history, disciplinary record, other business activities, compensation, and oversight. As a required disclosure document, it strengthens investor protections by making it easier to evaluate the qualifications and potential conflicts of those offering guidance on important financial matters.