Form ADV
The RIA's registration and disclosure document.
What is Form ADV?
Part 1 covers the business, ownership, and disciplinary history; Part 2 is the plain-English brochure describing services, fees, conflicts, and strategies that must be given to clients. Publicly searchable, and the first place to check any adviser.
Form ADV: a worked example
A client can read the fee schedule and conflict disclosures in Part 2A before signing.
More terms in Regulation & Professional Duty
Fiduciary Duty
A legal obligation to act in the client's best interest.
Suitability Standard
A recommendation must be appropriate given the client's profile.
Regulation Best Interest (Reg BI)
SEC rule requiring broker-dealers to act in a retail client's best interest.
Registered Investment Adviser (RIA)
A firm registered to give advice for a fee, holding fiduciary duty.
Broker-Dealer
A firm that executes trades as agent (broker) or principal (dealer).
FINRA
The self-regulatory organization overseeing broker-dealers.
Securities and Exchange Commission (SEC)
The federal agency regulating securities markets.
SIPC
Insurance against broker failure - not against investment losses.