What this document can tell you
Form ADV is not a rating. It is a structured disclosure record that lets you test a proposal against the adviser's filed business practices, fee schedule, conflicts and disciplinary information.
Your reading route
Confirm that you opened the correct filing
Search the firm in IAPD and match its legal name, main office and SEC or state file number. Marketing names can differ from the registered entity. Save the current filing and note its amendment date so every candidate is compared using a dated record rather than a screenshot or brochure supplied without context. Next step: Compare the firm's shorter Form CRS relationship summary.
Use Part 1 for the firm's regulatory outline
Part 1 contains structured information about the business, ownership, clients, advisory activities, affiliations and reported disciplinary events. Review the firm's registration status and the schedules behind any affirmative disclosure answer. Part 1 is designed for regulatory reporting, so use it to identify facts that need a plain-language explanation rather than treating every checked box as a verdict. Next step: Convert the disclosed fee layers into dollars.
Read Part 2A as the firm's operating manual
The narrative brochure explains advisory services, fee arrangements, methods, material conflicts, disciplinary information and other business practices. Focus on the services and fee items that match your proposed engagement. Search for references to brokerage, insurance, wrap programmes, related companies, referral compensation and custody, then ask how each applies to you. Next step: Review the financial adviser verification path.
Read Part 2B for the person doing the work
The brochure supplement describes the supervised person who provides advice, including education, business background, disciplinary information and certain outside activities. Confirm that the person named in the supplement is the person who will actually advise you. A strong firm brochure does not answer who makes day-to-day decisions on your account. Next step: Verify a CFP certification separately.
Turn disclosure into written follow-up
Mark differences between Form ADV, Form CRS, the proposal and the conversation. Ask the adviser to resolve each difference in writing and identify the controlling document. Recheck the filing before signing because registration, personnel and disclosures can change after an introductory meeting. Next step: Match the filing to the engagement agreement.
Follow one detail through the document
A proposal describes a 0.80% advisory fee. Part 2A says the fee is negotiable and separately identifies custody and fund expenses. The household asks for a first-year dollar estimate that includes all three cost layers and requests the circumstances under which the stated advisory fee can be reduced. The filing created a useful question; it did not calculate the answer automatically.
Document review checklist
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Primary sources
Questions about the document
Does a Form ADV filing mean the SEC approves the adviser?
No. A public registration filing provides disclosure and regulatory information; it is not an endorsement, quality score or guarantee of future conduct.
What if the proposal is more specific than Form ADV?
That can be normal, but the documents should not conflict. Ask which agreement controls, obtain the full fee and service terms in writing and keep the dated versions you relied on.
Finish the review
- Match the legal firm and file number
- Record the filing and amendment dates
- Review Part 1 disclosure schedules
- Read the relevant Part 2A fee and conflict items
Create a filing to proposal reconciliation
Reading the filing becomes practical when every proposal claim has a place in the record. Keep the legal firm name, filing date and brochure version at the top of your notes. Then connect the service, fee, conflict and responsible person in the proposal to the applicable Form ADV item.
| Proposal claim | Record to inspect | Reconciliation question |
|---|---|---|
| Services included | Part 2A advisory business and methods | Does the brochure support the promised scope? |
| Advisory fee | Part 2A fees and compensation | What other costs remain outside this fee? |
| Conflict control | Part 2A conflicts and affiliations | Does this conflict apply to the proposal? |
| Assigned adviser | Part 2B brochure supplement | Is this the person doing the work? |
Control the version before analysing details
Record the annual amendment date and any more recent other than annual amendment. Save the Part 2A brochure and the Part 2B supplement for the person assigned to you. If a brochure supplied by the adviser differs from IAPD, ask which is current and why. A comparison built from different filing dates can create a false difference between firms.
Trace affiliations into the recommendation
When the filing names related brokers, insurers, custodians, referral arrangements or other businesses, ask whether the proposed service uses them and how anyone is paid. Follow the answer into the engagement agreement and product documents. Disclosure identifies a potential incentive; your task is to determine whether it applies to the recommendation and what control is used.
This guide is general education, not individual financial, investment, insurance, mortgage, legal or tax advice.