Mississippi Administrative Code
Title 1 - Secretary of State
Part 14 - Securities Regulation
Chapter 6 - INVESTMENT ADVISERS
Rule 1-14-6.29 - Brochure Rule
Universal Citation: MS Code of Rules 1-14-6.29
Current through March 14, 2024
A. General Requirements.
Unless otherwise provided in this Rule, an investment adviser registered or required to be registered pursuant to Section 75-71-403 of the Act shall, in accordance with the provisions of this section, furnish each advisory client and prospective advisory client with:
1. A brochure, which may be a copy of Part 2A
of its Form ADV or written documents containing the information required by
Part 2A of Form ADV.
2. A copy of
its Part 2B brochure supplement for each individual:
a. Providing investment advice and having
direct contact with clients in this state; or
b. Exercising discretion over assets of
clients in this state, even if no direct contact is involved.
3. A copy of its Part 2A Appendix
1 wrap fee brochure if the investment adviser sponsors or participates in a
wrap fee account.
4. A summary of
material changes, which may be included in Form ADV Part 2 or given as a
separate document.
5. Such other
information as the Division may require.
6. The brochure must comply with the
language, organizational format, and filing requirements specified in the
Instructions to Form ADV Part 2.
B. Delivery.
1.
Initial Delivery. An
investment adviser, except as provided in Subsection (B)(3) of this Rule, shall
deliver the Part 2A brochure and any brochure supplements required by this
section to a prospective advisory client:
a.
Not fewer than forty-eight (48) hours prior to entering into any advisory
contract with such client or prospective client; or
b. At the time of entering into any such
contract, if the advisory client has a right to terminate the contract without
penalty within five (5) business days after entering into the
contract.
2.
Annual Delivery. An investment adviser, except as provided in
Subsection (B)(3) of this Rule, must:
a.
Deliver within one hundred twenty (120) days of the end of its fiscal year a
free, updated brochure and related brochure supplements which include or are
accompanied by a summary of material changes; or
b. Deliver a summary of material changes that
includes an offer to provide a copy of the updated brochure and supplements and
information on how the client may obtain a copy of the brochures and
supplements.
c. Advisers do not
have to deliver a summary of material changes or a brochure to clients if no
material changes have taken place since the last summary and brochure
delivery.
3. Delivery of
the brochure and related brochure supplements required by Subsections (B)(1)
and (2) of this Rule need not to be made to:
a. Clients who receive only impersonal advice
and who pay less than $500 in fees per year; or
b. An investment company registered under the
Investment Company Act of 1940; or
c. A business development company as defined
in the Investment Company Act of 1940 and whose advisory contract meets the
requirements of section 15(c) of that Act.
4. Delivery of the brochure and related
supplements may be made electronically if the investment adviser:
a. In the case of an initial delivery to a
potential client, obtains a verification that a readable copy of the brochure
and supplements were received by the client;
b. In the case of all other deliveries,
obtains each client's prior consent to provide the brochure and supplements
electronically;
c. Prepares the
electronically delivered brochure and supplements in the format prescribed in
Section (A) and instructions to Form ADV Part 2;
d. Delivers the brochure and supplements in a
format that can be retained by the client in either electronic or paper form;
and
e. Establishes procedures to
supervise personnel transmitting the brochure and supplements and prevent
violations of this Rule.
C. Other Disclosures. Nothing in this Rule shall relieve any investment adviser from any obligation pursuant to any provision of the Act or the rules and regulations thereunder or other federal or state law to disclose any information to its advisory clients or prospective advisory clients not specifically required by this Rule.
D. Definitions. For the purpose of this Rule:
1.
Contract for impersonal advisory
services means any contract relating solely to the provision of
investment advisory services:
a. By means of
written material or oral statements that do not purport to meet the objectives
or needs of specific individuals or accounts;
b. Through the issuance of statistical
information containing no expression of opinion as to the investment merits of
a particular security; or
c. Any
combination of the foregoing services.
2. In reference to an advisory contract,
"entering into" does not include an extension or renewal without material
change of any such contract that is in effect immediately prior to such
extension or renewal.
Miss. Code Ann. § 75-71-605 (2020).
Disclaimer: These regulations may not be the most recent version. Mississippi may have more current or accurate information. We make no warranties or guarantees about the accuracy, completeness, or adequacy of the information contained on this site or the information linked to on the state site. Please check official sources.
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