What is Form ADV? The Foundation of Advisor Transparency

Every investment advisor in the U.S. is required by law to file a document called Form ADV with the SEC. It covers how much money they manage, how they charge, who their clients are, and whether they've ever been disciplined. This is the data that powers TrueAdvisor.

Part 1: The numbers

Part 1 is structured data—think of it as a standardized fact sheet. Every advisor reports the same fields, which makes comparison possible:

• Assets under management and number of clients
• Number of employees and types of clients served
• How the firm gets paid (fees, commissions, or both)
• Disciplinary history and regulatory actions

This is what we pull into TrueAdvisor so you can search, filter, and compare advisors without reading through PDF filings.

Part 2: The brochure

Part 2 is a narrative document written in plain English. It explains the firm's services, fee structure, conflicts of interest, investment strategies, and the background of key people. Advisors are required to give this to prospective clients before signing them up.

If you're seriously considering an advisor, read their Part 2 brochure. It's where they have to disclose things they might not bring up in a sales meeting.

Why it matters

Form ADV exists so that advisors can't just say whatever they want. The information is standardized, legally required, and public. Advisors face penalties for providing false information, and they have to update their filing within 90 days of any significant change.

It's not perfect—some information is self-reported and requires interpretation. But it's the best standardized source of advisor data available, and it's where we start.