Form ADV

What Is Form ADV?

Form ADV is the uniform form that investment advisers use to register with the U.S. Securities and Exchange Commission (SEC) or with state securities regulators, and to keep that registration current. Advisers file it electronically through the Investment Adviser Registration Depository (IARD) system. Because the filed form is public, investors can look up an adviser's record and read its disclosures before deciding whether to work with that firm.

How the Form Is Organized

The form has several parts. Part 1 contains administrative information, such as the firm's ownership, the number of clients it serves, the amount of assets under management, the types of services it offers, and any disciplinary history. Part 2 is a narrative brochure written in plain language. Part 2A describes the firm itself, including its services, fee arrangements, investment strategies, and conflict of interests. Advisers must deliver Part 2A to clients. Part 2B contains supplements about individual advisory personnel. Advisers that serve retail investors also prepare Part 3, known as Form CRS, a short relationship summary.

Why It Matters to Investors

Advisers must update the form promptly when information becomes inaccurate and file an annual updating amendment after their fiscal year ends. Investors can search registered firms on the SEC's Investment Adviser Public Disclosure website. Reading the brochure can show how an adviser is paid, whether it earns commissions on products it recommends, and how it handles its fiduciary duty to clients.

The form is a disclosure document, not an endorsement. Registration does not mean the SEC or a state regulator approves of an adviser, vouches for its skill, or guarantees its results. Investors who want to understand a firm's practices are generally better served by comparing the disclosures themselves than by relying on registration alone.