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The ADV form is used to register investment advisors with the SEC or state securities commissions, and to make changes to existing registrations. It consists of three parts, including information about the applicant and their affiliates, required brochures, and a run page. The form must be updated annually and fees must be paid for submission. Electronic forms are submitted through the SEC-sponsored IARD system.
An ADV form is used when investment advisors need to register with the Securities and Exchange Commission (SEC) or state securities commissions. If there is a need to make changes to existing registrations, this form will also be used. There are two versions of the ADV module. One is a paper version and the other is an electronic version.
The ADV module consists of three parts. The first part attempts to identify the entity making the application. In some cases it is an individual; in other cases, this will be a business.
In addition to information about the requesting entity, questions will also be asked about the entities that control or exercise authority over the requestor’s operations. The first part of the ADV form contains numerous timetables. These request information on direct owners, indirect owners and disciplinary actions of both the applicant and any affiliates.
The next section of the form, Part 1B, compiles the information required by state authorities. Not everyone will be required to fill out this part. It is only required when an entity wishes to register with state authorities.
The third section, known as Part II, requires the brochure from the applicant institution. Typically, the requesting entity should archive the current brochure when needed. Those who are already registered with the SEC are not required to file this portion of the application with the SEC. They are simply required to keep the changes on file in case they are requested. State rules may vary.
The ADV form must be updated every year. This should be done within 90 days of the end of the tax year. There is some information that needs to be promptly changed if it changes.
Every application must include a run page. There are three possible run pages. One is used for residents of the United States (USA). Another is used for non-US residents. The third is required for registration with state authorities.
Electronic ADV forms are submitted through the SEC-sponsored Investment Adviser’s Registration Filing (IARD). To access this system, an applicant must apply using the FINRA Entitlement system. Both websites are protected by username and password.
Submitting an ADV form generally incurs fees. It is not only important that the applicant fills out the form completely and correctly; it is also important that the applicant includes the requested payment. If any of these things aren’t completed, chances are your application won’t be processed.
Smart Asset.
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