If you change your fees as an investment advisor, do you need to provide an updated brochure to current clients?

When it comes to an investment advisor changing their fees, the correct approach as per regulations requires that current clients are typically provided with updated information on a regular basis, such as annually. This annual update ensures that clients are kept informed about any changes that may affect their investment decisions, including fee adjustments.

While it is essential for current clients to be aware of any changes in fees, the advisory firm's obligations do not mandate an immediate distribution of the updated brochure specifically upon the change unless the change is material enough to warrant immediate disclosure. The annual update is a structured process that facilitates ongoing communication and relevance of the information being presented to clients.

This method helps maintain compliance with regulatory requirements while also fostering a transparent relationship between the advisor and their clients. Hence, the answer indicating that current clients receive updates on an annual basis aligns with best practices in the industry regarding communication and disclosure.