CFP

AAA

Regulations and Requirements - Reporting

Form ADV
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.

Brochure rule
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.
  1. 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.
  2. Privacy policy -
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