What is a Form ADV in the context of a Registered Investment Advisor (“RIA”)?

Definition: Form ADV (“Uniform Application for Investment Adviser Registration and Report by Exempt Reporting Adviser”) is a document that is used for the initial registration of an RIA with either the SEC or state, while also serving as an ongoing disclosure document for clients of the RIA. The form includes two main parts: Part 1 provides a business and financial profile; and Part 2 provides a narrative of services, fees, and conflicts of interest.

When used in an RIA context: “The RIA is required to give all new clients a copy of the firm’s ADV Part 2.”

See also: Episode #2, Episode #29