Advisory Fee Rules and Disclosure

No rule sets what an adviser may charge, but several govern how fees are disclosed and calculated. Form ADV Part 2A and Form CRS describe the fees a client pays, and the Marketing Rule requires net performance wherever gross performance is shown.

Fee billing errors are among the most frequent exam findings: fees charged on the wrong value, at the wrong rate, or not as the client agreement and Form ADV describe. Deducting fees directly from client accounts also gives the adviser custody.

5 documents on fees, ordered by legal weight

• Current · binding law

  Brochure Rule

  Rule 204-3 · 17 CFR 275.204-3

• Current, conditional · binding law

  Form CRS Delivery Rule

  Rule 204-5 · 17 CFR 275.204-5

• Current · binding law

  Marketing Rule

  Rule 206(4)-1 · 17 CFR 275.206(4)-1

• Current · Commission position

  Marketing Rule adopting release

  Release No. IA-5653 · 86 FR 13024

• Current · not a rule

  Marketing Rule FAQs

  Marketing Compliance FAQ