Under the investment advisers act of 1940, the renewnal of an advisory contract under different terms than the preceding contract:

The renewal of an advisory contract under different terms than the preceding contract requires that a revised brochure must be given to the customer at, prior to, contract renewal .

Explanation:

First, we need to define a term called ADV part 2A: Form ADV is a form used by investment advisers to register with the Securities commission and Exchange Commission (SEC) and state securities authorities.

There is no requirement to file an ADV Part 2A with a balance sheet promptly unless the adviser for the first time will accept $1,200 or more of prepaid fees, 6 months or more in advance of services rendered.

The "2-Day Free Look" at the "Brochure" is only required under NASAA rules for customers that are signing an advisory contract with that adviser for the first time - so it only applies to State-registered advisers, not to Federal Covered Advisers.

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