Final answer:
The three exemptions to providing someone with Part 2 of the ADV form relate to advisers with fewer than 100 clients, those offering impersonal advisory services, and those managing accounts over $1,000,000 for high net worth clients.
Step-by-step explanation:
The brochure rule, which pertains to Part 2 of the Form ADV, generally requires registered investment advisers to provide a narrative brochure written in plain English that describes the adviser’s business practices, fees, conflicts of interest, and disciplinary information.
However, there are three main exemptions to this requirement: The adviser does not have to deliver a brochure if the firm has had fewer than 100 clients over the past 12 months and does not anticipate having more than 100 clients.
Advisers are also exempt if they are providing investment advice exclusively to impersonal advisory services, where the advice is not tailored to individual client needs.
The third exemption applies to advisers that manage investment accounts worth more than $1,000,000, generally for high net worth clients, who typically have access to similar information through other means.