An investment adviser will begin the formal registration process by filing Form ADV, which provides detailed information regarding the investment adviser. Form ADV has four parts: 1A, IB, 2A, and 2B.
ADV Part 1A includes general information about the investment adviser, including:
• The principal office address.
• Type of organization, such as corporation or partnership.
• How the adviser will conduct business.
• If the firm engages in other activities, such as that of a broker dealer.
• Biographical data on the officers, directors, or partners.
• Disciplinary history of the officers, directors, partners, and the firm.
• Location of books and records if other than the principal office.
• If the adviser has custody of customer assets.
• If the adviser has dictionary authority over customer assets.
ADV Part IB is filed with the state securities administrator for advisers registered at the state level. Advisers who are federally registered do not file ADV Part IB.
Form ADV Part 2A will disclose information relating to clients. ADV Part 2A includes:
• How and when fees are charged.
• The types of securities the adviser does business in.
• How recommendations are made.
• The type of clients the adviser has.
• The qualifications of officers and directors.
Form ADV Part 2B provides information relating to individuals who:
• Provide investment advice and who have direct contact with advisory clients.
• Have discretion over client assets regardless of whether the individual has contact with clients.
INVESTMENT ADVISER REPRESENTATIVE
An investment adviser representative is a person who is under the control of the investment adviser and includes:
• Officers and directors
Clerical employees are not considered investment advisory representatives and are not required to register.