Glossary term
Form ADV - Investment Adviser Registration and Disclosure
Form ADV is the registration and disclosure form used by investment advisers registered with the SEC or state securities authorities.
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What Is Form ADV?
Form ADV is the uniform form used by investment advisers to register with the Securities and Exchange Commission or state securities authorities. It is also a public disclosure document that helps clients and prospective clients understand an advisory firm.
Form ADV includes information about the adviser's business, ownership, clients, services, fees, conflicts of interest, disciplinary history, and other details. Investors can review Form ADV through the SEC's Investment Adviser Public Disclosure website.
Key Takeaways
- Form ADV is used for investment adviser registration and disclosure.
- It includes firm information, services, fees, conflicts, and disciplinary history.
- Part 2 is the narrative brochure provided to clients.
- Part 3 is the relationship summary for advisers serving retail investors.
- Reviewing Form ADV is a useful due diligence step before hiring an adviser.
How Form ADV Works
Investment advisers file Form ADV electronically through the Investment Adviser Registration Depository system. The form is updated at least annually, and material changes may require amendments sooner.
Part 1 includes check-the-box and structured information about the firm. Part 2 is a plain-English brochure that explains services, fees, methods of analysis, disciplinary information, conflicts, and other business practices. Part 3, Form CRS, gives retail investors a shorter relationship summary.
Clients can use Form ADV to compare advisers, understand compensation, spot conflicts, and ask better questions. It is not a performance report, but it can reveal how a firm operates and where risks or incentives may exist.
Common Form ADV Parts
Part | What it covers | Why it matters |
|---|---|---|
Part 1 | Registration and firm data | Shows ownership, clients, assets, and business lines |
Part 2A | Firm brochure | Explains services, fees, conflicts, and practices |
Part 2B | Brochure supplement | Describes advisory personnel |
Part 3 | Relationship summary | Short retail-client overview |
Limits and Misunderstandings
Form ADV is not an endorsement by regulators. Registration does not mean the SEC or a state authority has approved the adviser's strategy, fees, or competence.
It also does not answer every due diligence question. Investors should still ask about custody, investment process, tax coordination, conflicts, credentials, service scope, and how the adviser is paid.
Form ADV is most useful when read before signing an advisory agreement and then reviewed again when fees, ownership, strategy, or conflicts change.
The Bottom Line
Form ADV is a core disclosure tool for evaluating investment advisers. It helps investors understand who an adviser is, how the firm is paid, what services it offers, and what conflicts or disciplinary history may exist.