# SEC Form ADV: Requirements, How to File, and Key Details

## What Is SEC Form ADV?

The [Securities and Exchange Commission (SEC)](https://www.investopedia.com/terms/s/sec.asp) requires all professional [investment advisers](https://www.investopedia.com/terms/i/investmentadvisor.asp) to submit SEC Form ADV. This form specifies the investment style, [assets under management (AUM)](https://www.investopedia.com/terms/a/aum.asp), and key officers of an advisory firm. This form must be updated annually and it must be made available as a matter of public record for companies that manage funds in excess of $25 million.

There are several parts of SEC Form ADV. The first section includes identifying information, If past disciplinary action was taken against the adviser, this must be noted in the first section of SEC Form ADV. The second section deals with the AUM, [investment strategy](https://www.investopedia.com/terms/i/investmentstrategy.asp), fee arrangements, and service offerings of the firm.

### Key Takeaways

*   SEC Form ADV is a mandatory registration document for investment advisers, detailing their business practices, fee structures, and any disciplinary actions.
*   The form is divided into Part 1, which includes fill-in-the-blank information about the adviser's business, and Part 2, a narrative describing services, fees, and conflicts of interest.
*   SEC Form ADV must be updated annually to reflect any material changes in the adviser's business, ensuring transparency for clients.
*   Form CRS, previously Part 3 of Form ADV, has become a separate document summarizing key information for retail investors.
*   Clients and potential clients should review SEC Form ADV to gain insights into a firm's asset mix and the professional background of its personnel.

## Key Aspects of SEC Form ADV

### Eligibility and Requirements for Filing SEC Form ADV

Officially called the Uniform Application for Investment Adviser Registration and Report by Exempt Reporting Adviser, SEC Form ADV serves as a registration document that must be submitted to the SEC and to state securities authorities.

The [North American Securities Administrators Association (NASAA)](https://www.investopedia.com/terms/n/nasaa.asp) reviews and approves changes made to the document, and it is supported by the [Financial Industry Regulatory Authority (FINRA)](https://www.investopedia.com/terms/f/finra.asp).

Clients should review the SEC Form ADV on file. That's because it provides transparent evidence of the asset mix within the firm, as well as the professional background of key personnel.

> **Important**
>
> Advisers typically offer a current SEC Form ADV to potential clients early in the process. In fact, investors should be immediately cautious of an adviser that does not freely offer the form upon request.

## Filing SEC Form ADV: A Comprehensive Guide

Below are highlights of key information from each part of the form.

### Part 1

The first portion of Form ADV is organized as fill-in-the-blank (often easier for the adviser to compile) and includes details about:

*   The adviser’s business
*   Its ownership structure and breakdown
*   Any affiliations
*   All relevant business practices
*   Current and historical clients
*   Details on its key and other employees
*   Any disciplinary events involving the advisory firm and/or its employees

The SEC uses this information to process registrations and manage its regulatory programs.

### Part 2

The second section of the form is a longer narrative that is prepared by the investment adviser. This must be written in plain English and contain detailed information on the specific types of advisory services offered, the fee schedule of the adviser, disciplinary information, and any [conflicts of interest](https://www.investopedia.com/terms/c/conflict-of-interest.asp). This latter part may include details on whether any directors have outside business interests that could impact their judgments or provide inside information.

This part should also include management background—their educational history and business experiences. These bios should extend to key advisory personnel, as well. This section is the most important primary [disclosure](https://www.investopedia.com/terms/d/disclosure.asp) document offered to clients by investment advisers. Brochures are always available to the public once they are filed.

SEC Form ADV Part 2 must also include a supplement, which details information about key employees who directly provide investment advice to clients.  

### Maintaining Compliance: Annual Updates to SEC Form ADV

Investment advisers must submit annual updates, including all critical changes or activities within the firms.

## Introduction to SEC Form CRS: The Relationship Summary

SEC Form ADV used to include Part 3, a summary called the relationship summary. In June 2019, the SEC amended the form and spun the third section off into an altogether new form called SEC Form CRS or the Relationship Summary.

The form is meant to "deliver to retail investors a brief customer or client relationship summary that provides information about the firm." It must be filed with the SEC by every firm that provides retail investment services to their clients and it must be submitted to these individuals.

As noted above, SEC Form CRS is a summary of information from SEC Form ADV. Therefore, advisers must include the following information:

*   Identifying information
*   Services provided
*   Client relationships
*   Fees and costs
*   Conflicts of interest
*   Standards of conduct
*   Disciplinary action
*   Additional details

The form must be concise and written in plain English so it can be easily understood.

## Accessing SEC Form ADV: Tips for Investors

To request a copy of Form ADV, contact the SEC branch closest to you. Potential and current clients of an investment adviser should always review the Form ADV on file, as it provides transparent evidence of the [asset mix](https://www.investopedia.com/terms/a/asset-mix.asp) within the firm and the professional backgrounds of key personnel.

### Download SEC Form ADV

Here is a [link](https://www.sec.gov/files/formadv.pdf) to a downloadable SEC Form ADV.

## How Do I Find a Firm’s SEC Form ADV?

All firms must make the SEC Form ADV they submit to regulation authorities public. This means they can be easily accessed through the Investment Advisor Public Disclosure page of the Securities and Exchange Commission's website. You can also make a request directly to the firm. Keep in mind that all investment firms are required to provide new and existing clients with these forms.

## Do Brokers/Dealers File SEC Form ADV?

Yes. Anyone who provides investment services to their clients is expected to file SEC Form ADV. This includes investment firms or individual advisers. It serves as a registration form with the Securities and Exchange Commission and it must also be filed with one or more state securities authorities.

## What Is SEC Form ADV Part 1 and Part 2?

Part 1 of SEC Form ADV is meant to identify the firm that is submitting the form. It includes information about the firm, the services it provides, who owns the business, the clients it serves, any business affiliations, and any disciplinary actions it faced in the past. This section is a fill-in-the-blank or check-box format, which makes it easier to complete.

## What Is SEC Form ADV Part 2A and 2B?

Part 2 of SEC Form ADV serves as a brochure for the firm. It provides disclosures about key information about the company, including its business practices, fees, conflicts of interest, and any discipline that it faced in the past.

This section is divided into two different sections. Part 2A is the brochure's cover page, which has the identifying information, while Part 2b is the supplement. Details must be written concisely in simple English that can be easily understood.

## What Is SEC Form ADV Part 3?

This section is called the relationship summary. In June 2019, the SEC amended SEC Form ADV and turned Part 3 into a separate form called SEC Form CRS. This form must be submitted by any firm that provides retail investment services to their clients. The form summarizes parts of SEC Form ADV, including identifying information, client relationships, and conflicts of interest.

## The Bottom Line

SEC Form ADV is a critical regulatory document required for investment advisers to register with the SEC and state authorities, offering transparency about investment style, AUM, and fees. It is essential for investment advisers and firms to submit accurate information annually, as inaccuracies could result in severe consequences, including fines or prosecution.

Clients should review this form to ensure they understand the firm’s asset mix, fee arrangements, and the professional history of its key personnel. Advisers must ensure their submissions are drafted in clear, simple language to make them easily accessible to all potential and current investors.

> **Article Sources**
>
> 1.  U.S. Securities and Exchange Commission. "[Form ADV and IARD Frequently Asked Questions](https://www.sec.gov/divisions/investment/iard/iardfaq.shtml)."
>     
> 2.  U.S. Securities and Exchange Commission. "[Investor Bulletin: Form ADV – Investment Adviser Brochure and Brochure Supplement](https://www.sec.gov/oiea/investor-alerts-bulletins/ib_formadv.html)."
>     
> 3.  North American Securities Administrators Association. "[Investment Advisor Guide](https://www.nasaa.org/industry-resources/investment-advisers/investment-adviser-guide/)."
>     
> 4.  U.S. Securities and Exchange Commission. "[FORM ADV (Paper Version)](https://www.sec.gov/about/forms/formadv-part1a.pdf)."
>     
> 5.  Investor.gov. "[Form ADV](https://www.investor.gov/introduction-investing/investing-basics/glossary/form-adv)."
>     
> 6.  U.S. Securities and Exchange Commission. "[Form CRS Relationship Summary; Amendments to Form ADV](https://www.sec.gov/info/smallbus/secg/form-crs-relationship-summary)."