NCS Monthly Webinar Series April Monthly Compliance Checklist: ADV Disclosure Requirements National Compliance Services, Inc. Delray Beach, FL Alan J. Foxman, Esq extension 204 Presented by:

©2014 National Compliance Services, Inc. 2 ADV Disclosure Requirements 1.(For State Registered Firms) Does our plain English Form ADV Part 2 ("disclosure brochure") comply with the disclosure brochure requirements of the states in which we are registered? (For SEC Registered Firms) Does our plain English Form ADV Part 2 ("disclosure brochure") comply with amended Rule 204-3? 2.Have we filed our annual updating amendment within 90 days of the end of our fiscal year? 3.If our disclosure brochure contains material changes from our last annual update, have we included a summary of material changes with the brochure we filed for our annual updating amendment?

©2014 National Compliance Services, Inc. 3 ADV Disclosure Requirements 4.Do we have a process in place to offer our Form ADV Part 2A to our existing clients annually, and deliver it to our clients when we update the information with material changes? 5.Do we have a process in place to ensure the preparation of brochure supplements (Form ADV Part 2B) for each supervised person who: a.Formulates investment advice for a particular client and has direct client contact; or b.Makes discretionary decisions for a client's assets, even if the supervised person has no direct client contact. 6.Are these records retained in accordance with our home state's recordkeeping requirements?

©2014 National Compliance Services, Inc. 4 ADV Disclosure Requirements 7.Does our disclosure brochure accurately and thoroughly describe the nature and scope of our services? 8.Do we offer any advisory services that are not described in our disclosure brochure? 9.Does our disclosure brochure accurately and thoroughly disclose all circumstances where the interests of our firm or its associated persons may conflict with those of our clients' or potential clients' interests?

©2014 National Compliance Services, Inc. 5 ADV Disclosure Requirements 10.Does our disclosure brochure disclose all compensation received by our firm and its associated persons in connection with providing investment advice to clients? 11.Does our disclosure brochure include a summary of our Code of Ethics and offer clients and prospective clients the opportunity to receive a full copy of the Code upon request?

©2014 National Compliance Services, Inc. 6 ADV Disclosure Requirements 12.If our firm or any associated person has a material interest in client transactions, do we disclose the conflicts of interest and how we address them? 13.Does our disclosure brochure describe our process for managing assets including our process for reviewing client accounts and providing reports to clients? 14.Does our disclosure brochure accurately describe the types of investments for which we offer advice, as well as our methods of analysis, investment strategies, and the risks associated with those investments, methods, and strategies?

©2014 National Compliance Services, Inc. 7 ADV Disclosure Requirements 15.Does our disclosure brochure fully disclose all of our business activities, any arrangements that are material to our advisory business as well as other financial industry activities or affiliations? 16.Does our disclosure brochure accurately describe our fees? 17.Are our advisory agreements consistent with the services and fees described in our disclosure brochure? 18.Does our disclosure brochure describe our soft dollar and brokerage practices?

©2014 National Compliance Services, Inc. 8 ADV Disclosure Requirements 19.If our firm or a related person of our firm has custody, have we disclosed custody in our Form ADV? 20.If we require prepayment of fees more than $500, six or more months in advance, are we delivering an audited balance sheet with our disclosure brochure for the most recent fiscal year as required? 21.If we have custody to require prepayment of fees (as described above), have we disclosed any financial condition reasonably likely to impair our ability to meet our contractual obligations to client?

©2014 National Compliance Services, Inc. 9 ADV Disclosure Requirements 22.(State only) - If we have custody or require prepayment of fees (as described above), are we complying with our home state's minimum net capital, bonding, and/or financial reporting requirements, as applicable? 23.(For State)- (Question 22 for SEC) Has our firm or any supervised person of the firm ever filed for bankruptcy?

©2014 National Compliance Services, Inc. 10 ADV Disclosure Requirements 24.(For State)(Question 23 for SEC) - If our firm or any supervised person has ever filed for bankruptcy, is it disclosed on the appropriate Form ADV (2A/2B)? 25.(For State)(Question 24 for SEC) - Does our disclosure brochure describe our best execution policy? 26.(For State)(Question 25 for SEC) - Does our disclosure brochure describe our proxy voting policy? 27.(For State)(Question 26 for SEC) - Does our disclosure brochure disclose whether we are obligated to pursue securities class action lawsuits on behalf of our clients?

©2014 National Compliance Services, Inc. 11 ADV Disclosure Requirements 28.(For State)(Question 27 for SEC) - If we do not allocate gains resulting from trade errors to clients, have we disclosed such policy in our disclosure brochure? 29.(For State)(Question 28 for SEC) - Have we disclosed our policy on aggregation of client transactions in our disclosure brochure? 30.(For State)(Question 29 for SEC) - If we compensate third parties for client referrals, have we disclosed our practice in our disclosure brochure?

©2014 National Compliance Services, Inc. 12 ADV Disclosure Requirements 31.(For State)(Question 30 for SEC) - If applicable have we fully disclosed financial, legal and disciplinary information required by Form ADV Part 2? 32.(For State)(Question 31 for SEC) - During the preceding year, was our Form ADV amended promptly when necessary? 33.(For State)(Question 32 for SEC) - Do we have a process in place to track material changes to our disclosure brochure and to promptly provide clients with a copy of our updated disclosure brochures? (Question 33 for SEC) - During the preceding year, did we file amendments to our Form ADV with the SEC?

©2014 National Compliance Services, Inc. 13 ADV Disclosure Requirements 34.Are there records to show that our disclosure brochure was provided to all clients at the inception of the relationship? 35.If applicable, have we provided wrap fee disclosures to our clients participating in wrap fee programs that we sponsor? 36.Do our policies and procedures ensure that Parts 1 and 2 of our Form ADV are kept up-to-date and consistent with each other? 37.Have we reviewed our policies and procedures governing our disclosure obligations, and amended them when necessary?