How to read an adviser's Form ADV, brochure and Form CRS
A plain-English map of the three documents every registered adviser must give you, and the sections worth reading first.
Registered investment advisers disclose a great deal about themselves — more than most people ever read. The documents are free on the SEC's Investment Adviser Public Disclosure (IAPD) site. Here is what each one is, and where to look first.
Form CRS: the two-page relationship summary
Since June 30, 2020, SEC-registered advisers and broker-dealers that serve retail investors must give them a short relationship summary, called Form CRS (it is also Form ADV Part 3 for advisers). It is written in plain English and covers the services offered, fees and costs, conflicts of interest, the firm's legal standard of conduct, and whether the firm or its professionals have reportable disciplinary history. It also includes “conversation starter” questions — use them. Form CRS is the best place to start because it is short and standardised, so it is easy to compare firms side by side.
Form ADV Part 1: the structured data
Part 1A is a questionnaire filed with regulators. It is where our data comes from. The items most useful to a prospective client are:
- Item 5.D — types of clients and how many of each (individuals, high-net-worth individuals, pension plans, businesses).
- Item 5.E — how the firm is compensated: percentage of assets, hourly, subscription, fixed fees, commissions, performance-based fees.
- Item 5.F — regulatory assets under management and number of accounts.
- Item 5.G — the services offered, such as financial planning or portfolio management for individuals.
- Item 6.A and 7.A — other businesses and financial-industry affiliations, a key source of conflicts.
- Item 11 — disciplinary history of the firm and its advisory affiliates. Each “yes” comes with a Disclosure Reporting Page giving the details.
Form ADV Part 2A: the brochure
The brochure is the firm's narrative disclosure, and the most important document to read before hiring. Advisers must give it to you before or at the time you sign an advisory agreement. The SEC's investor bulletin on the brochure describes its sections. Read these first:
- Advisory business — what the firm actually does and how long it has done it.
- Fees and compensation — the fee schedule, how fees are billed, whether they are negotiable, and other costs you pay (fund expenses, custodian and trading fees).
- Types of clients — including any minimum account size or minimum fee.
- Disciplinary information — material legal or disciplinary events.
- Other financial industry activities and affiliations, and client referrals and other compensation — where conflicts are disclosed.
- Brokerage practices and custody — who holds your money. Most advisers use an independent custodian; you should receive account statements directly from it.
Form ADV Part 2B: the brochure supplement
Part 2B covers the individual people who will advise you: education, business background, other business activities, additional compensation and disciplinary information. Ask for the supplement for the person you'll actually work with.
What changed? The summary of material changes
Each year advisers update Form ADV and summarise material changes to the brochure. Reading it is a quick way to notice a new fee schedule, a change of ownership or a new affiliation.
How to use this site with Form ADV
Each profile here shows a handful of Part 1A answers — fee types, services, assets under management, clients, other business activities and whether Item 11 disclosures were reported — and links to the firm's IAPD summary, where you can open the full Form ADV and the brochure. Use our listings to build a shortlist; use the brochure and Form CRS to decide.