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. Investment Advisor

    As defined by the Investment Advisors Act of 1940, any person ...
  6. SEC Form ADV

    The application for registration as an investment adviser or ...
Related Articles
  1. Investing

    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 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.
  3. Financial Advisor

    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.
  4. Financial Advisor

    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.
  5. Financial Advisor

    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.
  6. Financial Advisor

    7 Steps To Evaluate A Financial Advisor

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

    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.
  8. Financial Advisor

    Paying Your Investment Advisor - Fees Or Commissions?

    The way a professional is compensated can affect quality of service. Learn more here.
  9. Financial Advisor

    Going Independent: What Advisors Should Expect

    Thinking of going independent with your financial advisory practice? Here are some things to consider.
  10. Financial Advisor

    Management Fees: How Advisors Can Protect Them

    With management fees falling, advisors are wondering what they can do about it. Here are a few tips.
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. 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 >>
  3. 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 >>
  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 >>
Hot Definitions
  1. Federal Direct Loan Program

    A program that provides low-interest loans to postsecondary students and their parents. The William D. Ford Federal Direct ...
  2. Cash Flow

    The net amount of cash and cash-equivalents moving into and out of a business. Positive cash flow indicates that a company's ...
  3. PLUS Loan

    A low-cost student loan offered to parents of students currently enrolled in post-secondary education. With a PLUS Loan, ...
  4. Graduate Record Examination - GRE

    A standardized exam used to measure one's aptitude for abstract thinking in the areas of analytical writing, mathematics ...
  5. Graduate Management Admission Test - GMAT

    A standardized test intended to measure a test taker's aptitude in mathematics and the English language. The GMAT is most ...
  6. Magna Cum Laude

    An academic level of distinction used by educational institutions to signify an academic degree which was received "with ...
Trading Center