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 -


Advertising and Solicitation

Related Articles
  1. Financial Advisor

    SEC on Advisor Performance Claims: 'Show Your Work'

    The SEC will now require advisors to keep records of any documentation that is distributed to clients that contains performance numbers of any kind.
  2. Financial Advisor

    Why Clients Leave Their Advisors

    Clients fire financial advisors for many reasons. Here's a rundown on why they're likely to do so and how to avoid losing any from your roster.
  3. Financial Advisor

    The Top Challenges Financial Advisors Face

    These are the top challenges that financial advisors face today.
  4. Tech

    How Financial Advisors Pick Client Investments

    How advisors choose investment portfolios is varied, and investors are wise to check with theirs to find out how he or she makes their investment choices.
  5. Tech

    Advisors Need to Talk Less, Ask and Listen More

    Financial 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.
  6. Tech

    Things That Keep Financial Advisors Up at Night

    Financial advisor worries include the changing technology landscape, the emergence of robo-advisors, government regulation and financial crisis fallouts.
  7. Personal Finance

    What Should You Look for in a Financial Advisor?

    Here are five important considerations for when you are choosing a financial advisor for your investment portfolios and your financial future.
  8. Financial Advisor

    Qualifications That Every Financial Advisor Needs

    There are four qualifications that all financial advisors should have, including educational requirements, licensing, certifications and designations and skills.
  9. Financial Advisor

    What Triggers an SEC Audit for Financial Advisors?

    Advisors looking to avoid an SEC audit should pay heed to this list of what may catch the regulator's attention.
  10. Small Business

    How Often Should You Contact Clients?

    Figuring out how often an investment advisor should contact clients is not easy.
Frequently Asked Questions
  1. What are the Differences Among a Real Estate Agent, a broker and a Realtor?

    Learn how agents, realtors, and brokers are often considered the same, but in reality, these real estate positions have different ...
  2. What is the difference between amortization and depreciation?

    Because very few assets last forever, one of the main principles of accrual accounting requires that an asset's cost be proportionally ...
  3. Which is better, a fixed or variable rate loan?

    A variable interest rate loan is a loan in which the interest rate charged on the outstanding balance varies as market interest ...
  4. What is the 1003 mortgage application form?

    Learn about the 1003 mortgage application form, what information it requires and why this form is the industry standard for ...
Trading Center