Advisor Registration -- Form ADV

Purpose of the Form ADV

The Uniform Application for Investment Adviser Registration (commonly referred to as "Form ADV") is the official application document to register as an investment advisor firm. Both the U.S. Securities and Exchange Commission ("SEC") and the state securities regulators require use of the Form ADV as an investment advisor registration document. After initial registration is granted, Form ADV must be amended at least annually and if any there are any material changes to your business or services.

The Sections of Form ADV

Form ADV has two main sections, Part 1 and Part II. Part 1A identifies information about the registered investment advisor, including the place of business, the basis for registration, the type of organization, ownership, services and fees and several other topics. Part II, also referred to as the "Brochure", serves as the required disclosure statement that all registered investment advisers must provide to clients in advance of entering into an advisory agreement.

Form ADV Part 1A

The Form ADV Part 1A also includes several schedules (as noted below). Form ADV Part 1B requires certain information from state registered investment advisor applicants.

1. Schedule A lists the executive officers, which must include Chief Compliance Officer, Chief Executive Officer, Chief Investment Officer, Chief Financial Officer, Chief Operations Officer,and other C-Level associates. It also requires disclosure of direct owners of the advisor that posses a 5% or greater ownership interest.
2. Schedule B lists all indirect owners with a 25% or greater ownership interest.
3. Schedule D list miscellaneous information such as (i) Other business names used; (b) Other office locations; (c) WebSite addresses; (d) Location(s) of books and records; and (e) Affiliated registered investment advisors and broker/dealers.
4. Disciplinary Reporting Page ("DRP") requires details about felony or investment-related misdemeanor, regulatory disciplinary actions, or court judgments related to violation of investment-related statutes and regulations by the investment advisor or its affiliated persons.

Form ADV Part II and Schedule F

Form ADV Part II and Schedule F are not only required filing documents, but also serve as the required disclosure statement that a registered investment advisor must provide to its clients prior to entering into an advisory agreement. Advisers may utilize a customized brochure as the disclosure statement, however, it must contain all of the required information contained within Form ADV Part II and Schedule F. For advisors sponsoring wrap fee programs, Schedule H must also be completed along with Part II.

Schedule F is arguably the most important section of the Form ADV and the most complex to draft. As a continuation sheet for question in Part II, Schedule F provides a narrative of the services provided, fees charged and other pertinent information. The specific content and length of the Schedule F will vary greatly, depending on the services provided, the unique characteristics of your business, and numerous other factors.

Let AdvisorAssist help keep your firm in compliance. If you would like to speak with one of our principals, fill out the form to the right or call us at 866.513.4042.