How often must an updated Brochure be delivered after the adviser's fiscal year-end?

The correct answer indicates that an updated Brochure must be delivered within 120 days following the adviser’s fiscal year-end. This requirement is rooted in the regulatory framework that governs investment advisers, particularly under the Investment Advisers Act of 1940, which mandates that advisers provide clients with a current Brochure containing comprehensive information about their services, fees, and any conflicts of interest.

The 120-day timeframe is specifically designed to ensure that clients are kept well-informed about the adviser's practices and any changes that may have occurred over the past fiscal year. This periodic update is crucial for maintaining transparency and allowing clients to make informed decisions regarding their investments.

Clients need timely access to this information to assess the adviser's performance and strategies, as well as any risks or issues that might affect their investments. By adhering to this timeframe, firms fulfill their obligations to their clients while promoting trust and accountability in their advisory relationships.