Form ADV

AAA

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.


INVESTOPEDIA EXPLAINS '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. Securities And Exchange Commission ...

    A government commission created by Congress to regulate the securities ...
  2. Asset Allocation

    An investment strategy that aims to balance risk and reward by ...
  3. Registered Investment Advisor - ...

    An advisor or firm engaged in the investment advisory business ...
  4. Portfolio Management

    The art and science of making decisions about investment mix ...
  5. Investment Objective

    A client information form used by registered investment advisors ...
  6. Comprehensive Automated Risk Data ...

    The Comprehensive Automated Risk Data System (CARDS) is an initiative ...
RELATED FAQS
  1. Is it important to check the professional history of my investment advisor?

    Absolutely! Just as finding a good mechanic will help keep your car running smoothly, finding a good broker or financial ... Read Full Answer >>
Related Articles
  1. Budgeting

    Find The Right Financial Advisor

    Learn how to weed out those who are just out to make a quick buck.
  2. Mutual Funds & ETFs

    Separately Managed Accounts: A Mutual Fund Alternative

    It takes a hefty minimum investment to get in in on an SMA, but these offer some distinct advantages.
  3. Options & Futures

    What Is A Registered Investment Advisor?

    Hoping for a career in the financial services industry? Working for an RIA may fit the bill.
  4. Stock Analysis

    Why Should You Invest In Stratasys Today?

    When Stratasys pre-announced its fourth-quarter earnings, management highlighted that its MakerBot acquisition was underperforming expectations.
  5. Investing

    How The SEC Tracks Insider Trading

    We look at how the SEC tracks and tries to stop insider trading - a seemingly impossible task.
  6. Investing News

    Folio Investing Brings Experience To Robo-Advisors

    Prior to the recent upsurge of robo advisors, Folio Investing established itself as an alternative investment service through its online service.
  7. Economics

    America's Most Notorious Corporate Criminals

    Learn about the crimes and punishments of some of the most infamous convicted white-collar crooks.
  8. Investing

    What's the SEC?

    The Securities and Exchange Commission (SEC) is an independent agency of the United States government. The mission of the SEC is to enforce securities laws passed by congress. These laws aim ...
  9. Investing Basics

    Are You An Investor Or Trader?

    Some stock market participants are investors or traders, and others are trying to do both. Often, they get in trouble by trying to do too much with little.
  10. Investing News

    Two Lessons from Last Week’s Sell-Off

    September lives up to its reputation for weakness. Last week stocks suffered their worst pullback since the summer, although markets stabilized on Friday.

You May Also Like

Hot Definitions
  1. Interest Rate Risk

    The risk that an investment's value will change due to a change in the absolute level of interest rates, in the spread between ...
  2. Income Effect

    In the context of economic theory, the income effect is the change in an individual's or economy's income and how that change ...
  3. Price-To-Sales Ratio - PSR

    A valuation ratio that compares a company’s stock price to its revenues. The price-to-sales ratio is an indicator of the ...
  4. Hurdle Rate

    The minimum rate of return on a project or investment required by a manager or investor. In order to compensate for risk, ...
  5. Market Value

    The price an asset would fetch in the marketplace. Market value is also commonly used to refer to the market capitalization ...
  6. Preference Shares

    Company stock with dividends that are paid to shareholders before common stock dividends are paid out. In the event of a ...
Trading Center