Form ADV
Form ADV is the primary disclosure filing for U.S. investment advisers, detailing business practices, fees, conflicts, and compliance information.
Allocator relevance: High — a core diligence artifact to validate conflicts, ownership, fee practices, and any disciplinary history.
Expanded Definition
Form ADV typically includes Part 1 (structured disclosures filed with regulators) and Part 2 (the narrative “brochure”). Allocators cross-check ADV disclosures against DDQs, pitch decks, side letters, and marketing claims. Discrepancies—especially around conflicts, compensation, affiliations, and disciplinary events—are treated as immediate trust issues.
Decision Authority & Governance
Governance includes compliance ownership, annual update discipline, and internal review controls to ensure alignment across all investor-facing materials. Institutions often request the latest ADV, historical amendments, and supporting compliance policies where relevant.
Common Misconceptions
- ADV is just administrative paperwork.
- Having an ADV eliminates conflicts (it discloses them).
- Only “public” managers file ADV (many private fund advisers do).
Key Takeaways
- ADV is a regulatory disclosure anchor for diligence.
- Consistency across ADV, DDQ, and marketing is non-negotiable.
- Treat gaps as governance risk, not noise.