Under the Investment Advisors Act of 1940, if a registered investment advisor requires prepayment of $1200 or more of advisory fees, 6 months or more in advance of rendering services, the advisor must

give each new client a copy of his balance sheet

Explanation:

Note that an investment advisor manages the money or financial assets of their clients such as stocks, bonds, and mutual funds—and then buy, sell, and monitor them as directed by the clients.

According to the Investment Advisors Act of 1940 a federal law which defines the role and responsibilities of an investment advisor/adviser, in such a scenario the investment advisor would provide each new client a copy of his balance sheet.

the answer would be in this answer. someone already asked the question.  

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