The form used to apply for registration as an investment advisor with either the SEC or individual states.
- Part I - Asks for information used in the review process.
- Part II - Requires information on background and business practices of advisor.
- Amendments - Investment advisors are required to update Form ADV at least annually. Amendments also required to update when there are material changes to an investment advisor's business.
- Balance sheets - Advisors with custody or possession of client funds or securities or those requiring prepayment of fees six months or more in advance and in excess of $500 of a client must file a balance sheet. The balance sheet must be audited by an independent public accountant.
- Form ADV-W - Used to withdraw registration as investment adviser.
Investment advisors are required to deliver a written disclosure statement on their background and business practices to clients upon entering into an advisory contract. The brochure rule may be fulfilled by delivering to the client either a copy of the advisor's Form ADV Part II or another document containing the same information.
- Annual delivery - In addition to supplying the brochure upon entering into a contract, advisors must deliver (or at least offer in writing to deliver) to clients a copy of the advisor's current brochure.
Advertising and Solicitation
Financial AdvisorThere is no reason for a client to stay with a financial advisor who is not serving his or her needs. Here are some red flags to look out for.
Financial AdvisorFinancial advisors spend a lot of time giving their clients advice on how to invest their money. But what they often forget to do is listen.
Financial AdvisorWith management fees falling, advisors are wondering what they can do about it. Here are a few tips.
Financial AdvisorFinancial advisor worries include the changing technology landscape, the emergence of robo-advisors, government regulation and financial crisis fallouts.
Financial AdvisorAdvisors need to make a living too, but doing so by cutting corners at a client's expense isn't right. Here are the top complaints against advisors.
Financial AdvisorThere are four qualifications that all financial advisors should have, including educational requirements, licensing, certifications and designations and skills.
Financial AdvisorThe SEC has mandated that investment advisors provide more disclosure on separately managed accounts and performance numbers used in advertising.
Financial AdvisorLosing a client is never pleasant for a financial advisor, but sometimes this is a better outcome than continuing the relationship.
Managing WealthFinancial advisors must lead the charge against cybersecurity risks, for their clients and for their own practices.
Financial AdvisorIf you're a prospective financial advisor client (or an adviser), here are some questions you should ask ... and be prepared to answer.