Financial advisers must juggle several responsibilities in their everyday work – from meeting with clients to balancing portfolios and, of course, keeping up with their registration.
For registered investment advisers (RIA), that usually includes filing a Form ADV. Today, we’re exploring nine common questions about the Form ADV, including how to file online, relevant deadlines and more.
Related: ADV Updates: Is Your Firm Meeting its Ongoing Obligation to Update Regulatory Filings?
Nine Frequently Asked Questions (and Answers) About Form ADV
1. What does Form ADV stand for?
Form ADV is shorthand for the form’s official, tongue-twister name: the “Uniform Application for Investment Advisor Registration and Report by Exempt Reporting Advisor.” Implemented by the Securities and Exchange Commission (SEC), it’s reviewed and overseen by the North American Securities Administrators Association (NASAA) in conjunction with Financial Industry Regulatory Authority (FINRA).
Related: A Guide to Form ADV Filings for Registered Investment Adviser Firms
The Form ADV has been part of RIA regulation for decades, serving to gather key information about firms in an effort to increase client-adviser transparency. The document is broken into several parts and addresses fee structures, disclosures, assets under management (AUM) and other important information.
2. When is a Form ADV required?
Advisers and investment firms must file a Form ADV when they first register with the SEC or state securities administrator, and then update and re-file the form each year thereafter.
If you need to make any changes or updates to your Form ADV, you can do so within 90 days of the end of your firm’s fiscal year.
There are other instances where you may need to update your Form ADV before the annual deadline, such as if your firm is “adding or removing a relying adviser as part of your umbrella registration.”
3. Can I file a Form ADV online?
Yes – in fact, you are required to file the documents through an online database known as IARD. Once you create an account, you’ll be able to submit your Form ADV, make any changes and track your filing status.
From there, the SEC will typically decide within 45 days whether your application is deemed “effective,” after which you will receive notice via the mail.
You may also be required to file the Form ADV with state regulators, so be sure to check in with your specific state laws.
4. When is the deadline for filing my annual updates for Form ADV?
Qualifying advisers must file their Form ADV within 90 days of the end of the firm’s fiscal year.
5. Who has to file a Form ADV?
Investment professionals (both firms and individuals) will need to submit a Form ADV.
*Note that Exempt Reporting Advisors (ERAs) must also file a Form ADV, although the specific requirements and deadlines may vary.
6. When should I revise or amend my firm’s Form ADV?
Outside of annual updates, the SEC notes that there are a few instances where you’ll need to update your Form ADV, such as:
- “you are adding or removing a relying adviser as part of your umbrella registration
- information you provided in response to Items 1 (except 1.O. and Section 1.F. of Schedule D), 3, 9 (except 9.A.(2), 9.B.(2), 9.E., and 9.F.), or 11 of Part 1A or Items 1, 2.A. through 2.F., or 2.I. of Part 1B or Sections 1 or 3 of Schedule R becomes inaccurate in any way
- information you provided in response to Items 4, 8, or 10 of Part 1A, or Item 2.G. of Part 1B, or Section 4 of Schedule R becomes materially inaccurate; or information you provided in your brochure becomes materially inaccurate (with exceptions).”
The above list is not exhaustive. Simply, the ADV must be updated any time it becomes materially inaccurate.
7. How can I update my Form ADV?
All amendments must be submitted through the IARD online system.
If you’re filing an amendment outside of your annual update, you can do so by:
- Logging in,
- Clicking “ADV New Filing,” and
- Choosing “Submit an Other-than-Annual Amendment” from the filing types.
- From there, you’ll be prompted to enter the necessary information.
8. What are the different parts of a Form ADV?
The Form ADV consists of five major sections:
- Part 1A centers around the legal entity (firm) that will be the investment adviser.
- Part 1B is only required if you are a state-registered firm.
- Part 2A “requires advisers to create narrative brochures containing information about the advisory firm.”
- Part 2B “requires advisers to create brochure supplements containing information about certain supervised persons.” This is typically IARs of the firm.
- Part 3 includes a relationship summary, also known as a Form CRS. This applies to SEC-registered firms.
Related: Matching your RIA Firm’s Form ADV Parts 1, 2, and 3 (Form CRS)
*Exempt advisors may not need to complete each part of the Form ADV.
9. Is my Form ADV publicly available?
Yes, Form ADVs are made available to the public through the SEC’s Investment Adviser Public Disclosure website. Site visitors can search the database for Form ADVs filed by investment adviser firms, individual advisers and Exempt Reporting Advisers.
Correctly filing and updating your Form ADV is crucial to maintaining positive status with regulatory bodies and increasing transparency to clients and prospects. If your firm needs to amend your Form ADV or file your annual update, be sure to do so through the IARD system.
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