The Form ADV serves two primary functions; (1) it is the official governmental application form for investment advisor registration and (2) it serves as a disclosure brochure provided to investment advisory clients. An investment advisor is obligated to disclose material information to a client, and the Form ADV is a primary vehicle for an investment advisor to disclose the following information to clients and securities regulators: investment advisory services available to clients; the fees and costs associated with such investment advisory services; indirect compensation received from third-parties; the background of the investment advisor firm’s principals; affiliates of the investment advisor firm and outside business activities of the investment advisor firm, its principals, and supervised persons; potential conflicts of interest; and certain firm policies and procedures such as its Code of Ethics and proxy-voting policy.

The Form ADV consists of several sections. The Form ADV Part I is filed electronically with the applicable securities regulators via the IARD system.

Click here to view a recording of our compliance consultant give a summary of the general information that an investment advisor must disclose on the Form ADV Part 1A. SEC registered investment advisor firms must complete Form ADV Part 1A and state registered investment advisor firms must complete Form ADV Part 1A and Part 1B.

Click here to view a recording of our compliance consultant explain the information reported by an investment advisor on Form ADV Schedules A, B and D and Form ADV Part 1B.

The Form ADV Part 2 is a narrative document that is shared with securities regulators and serves as the disclosure document provided to all clients.

Click here to view a recording of our compliance consultant provide an overview of the information disclosed by an investment advisor on the Form ADV Part 2A. (In particular, the Form ADV Part 2 must be given to clients in advance or at the time an agreement for investment advisory services is executed. The Form ADV Part 2 must also be provided, or offered, on an annual basis to all current clients.)

Investment advisor firms sponsoring a wrap-fee program must also complete Appendix 1 of Form ADV Part 2A to provide specific information about the wrap-fee program. A single Appendix 1 brochure can be used to describe several wrap-fee programs.

Click here to view a recording of our compliance consultant discuss when an investment advisor is required to file a balance sheet with the Form ADV or prepare an Form ADV Appendix 1 for sponsoring a wrap-fee program.