Form ADV
Form ADV is the SEC's registration form for investment advisers. Part 1 contains business and disciplinary information; Part 2 (the brochure) must be delivered to clients and describes the adviser's services, fees, and conflicts of interest.
Definition
Form ADV —
Form ADV is the uniform registration form for investment advisers registered with the SEC or state securities authorities. It consists of Part 1 (organizational and disciplinary information filed electronically via IARD), Part 2A (the written disclosure brochure delivered to clients), Part 2B (brochure supplements for supervised persons who provide advisory services), and Part 3 (Form CRS, the client relationship summary for retail investors).
The parts of Form ADV
Part 1
Filed electronically through the Investment Adviser Registration Depository (IARD). Contains information about the adviser's business, ownership, clients, employees, business practices, affiliations, and disciplinary history. The SEC uses this for regulatory purposes; it is publicly searchable via the SEC's Investment Adviser Public Disclosure (IAPD) database.
Part 2A — The Brochure
A written, narrative disclosure document in plain English. Must be delivered to each prospective client before or at the time of entering into an advisory contract, and annually to each existing client. Required items include:
- Advisory business description
- Fees and compensation
- Performance-based fees
- Types of clients
- Methods of analysis and investment strategies
- Disciplinary information
- Code of ethics
- Brokerage practices
- Client referrals and other compensation
- Custody
- Investment discretion
- Voting client securities
- Financial information
Part 2B — Brochure Supplement
Covers individual supervised persons who provide advisory services to clients. Includes educational background, business experience, disciplinary information, and outside business activities.
Part 3 — Form CRS
A two-page relationship summary for retail investors describing the type of relationship and services offered, fees, conflicts of interest, disciplinary history, and how to get additional information.
When Form ADV must be updated
- Annually, within 90 days of the fiscal year end
- Promptly (within 30 days) when information on Part 1 becomes materially inaccurate
- Within 30 days of changes to Part 2A that make it materially inaccurate
Related
This glossary entry is general information, not legal advice.
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