Form ADV

DEFINITION of 'Form ADV'

A required submission to the Securities and Exchange Commission (SEC) by a professional investment advisor that specifies the investment style, assets under management (AUM), and key officers of the firm. The form must be updated annually and available as public record for companies managing in excess of $25 million.

If past disciplinary action has been taken against the advisor, this must be noted in the first section of a Form ADV. The second section deals with the AUM, investment strategy, fee arrangements and service offerings of the firm.


BREAKING DOWN 'Form ADV'

Potential and current clients of an investment advisor should always review the Form ADV on file, as it provides transparent evidence of the asset mix within the firm, as well as the professional background of key personnel.

Most advisors will offer a current Form ADV to any potential client early in the marketing process; in fact, investors should be immediately cautious of an advisor that does not freely offer the form upon request.

RELATED TERMS
  1. ADV Form

    A required submission to the Securities and Exchange Commission ...
  2. Notice Filing

    Information an investment advisor registered with the Securities ...
  3. SEC Form ADV-E

    A certification of client assets, both cash and securities that ...
  4. Registered Investment Advisor - ...

    An advisor or firm engaged in the investment advisory business ...
  5. SEC Form ADV

    The application for registration as an investment adviser or ...
  6. Federal Covered Advisor

    An investment advisor in the United States that manages more ...
Related Articles
  1. Professionals

    Advisory Fees On The Series 66 Exam

    Learn what you need to know about investment advisory fees and contracts to pass the Series 66 exam.
  2. Financial Advisors

    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.
  3. Professionals

    Reporting

    Reporting
  4. Investing Basics

    5 Things to Ask Before Hiring a Financial Advisor

    Choosing a financial advisor isn't an easy task. Here's a list of the most important things to consider when planning for your financial future.
  5. Your Practice

    Are AUM Fees a Thing of the Past?

    Although the assets under management fee seemed like a good idea for a long time, current market trends may be making it a thing of the past.
  6. Trading Strategies

    Is Your Broker Legit? 6 Steps to Take

    The Great Recession may have ended, but broker wrongdoing hasn't. Here's how to make sure you don't get stuck with the next Bernie Madoff.
  7. Investing Basics

    7 Steps To Evaluate A Financial Advisor

    Looking to hire a financial advisor but unsure what you want or need? Follow these seven steps.
  8. Financial Advisors

    How Advisors Can Prepare for a Bear Market

    Like investors, advisors must be ready for an eventual shift in the market. Here are a few scenarios and tips.
  9. Professionals

    The Federal and State Registration Process

    FINRA/NASAA Series 66: Section 8 The Federal and State Registration Process. In this section Form ADV, Consent to Service of Process, state and financial requirements,
  10. Financial Advisors

    Going Independent: What Advisors Should Expect

    Thinking of going independent with your financial advisory practice? Here are some things to consider.
RELATED FAQS
  1. In your initial meeting with an investment advisor representative (IAR) ...

    The correct answer is b): The investment advisor representative (IAR) can tell the prospective client all of the following ... Read Answer >>
  2. Are hedge funds registered with the Securities and Exchange Commission (SEC)?

    Learn the conditions that require hedge fund advisors to register with the U.S. Securities and Exchange Commission. Read Answer >>
  3. Under the “Brochure” rule of the Investment Advisers Act of 1940, which of these ...

    Under the "Brochure" rule of the Investment Advisers Act of 1940, which of these statements is true? a. The ADV Part II or ... Read Answer >>
  4. What fees do financial advisors charge?

    Learn how much financial advisors charge clients; discover the various payment plans available to customers seeking financial ... Read Answer >>
  5. Do financial advisors have a base salary?

    Find out how self-employed and corporate financial advisors make a living. Find out whether they get paid based on commission ... Read Answer >>
  6. What's the average salary of a financial advisor?

    Learn about average salaries for financial advisors. Explore different levels of compensation financial advisors receive ... Read Answer >>
Hot Definitions
  1. Goodwill

    An account that can be found in the assets portion of a company's balance sheet. Goodwill can often arise when one company ...
  2. Return On Invested Capital - ROIC

    A calculation used to assess a company's efficiency at allocating the capital under its control to profitable investments. ...
  3. Law Of Demand

    A microeconomic law that states that, all other factors being equal, as the price of a good or service increases, consumer ...
  4. Cost Of Debt

    The effective rate that a company pays on its current debt. This can be measured in either before- or after-tax returns; ...
  5. Yield Curve

    A line that plots the interest rates, at a set point in time, of bonds having equal credit quality, but differing maturity ...
  6. Stop-Limit Order

    An order placed with a broker that combines the features of stop order with those of a limit order. A stop-limit order will ...
Trading Center