Compliance Solutions for Investment Advisers

ADV Part 2A Disclosures

The SEC’s website specifically lists “Form ADV Disclosures” as a risk that may be present as part of an investment adviser’s everyday operations. Some of the specific risks listed are:

  • Inaccurate, omitted, or unclear disclosures;
  • Out of date disclosures;
  • Misrepresentation of services offered; and
  • Failure to disclose potential conflicts of interest.

After going through many, many SEC and state audits, our own rule of thumb is that you better disclose exactly what you do and you better be doing exactly as you disclose. Regulators will hold you to everything you say in your disclosure brochure.

Failure to update your Form ADV is a violation of SEC rules and similar state rules and could lead to sanctions, disciplinary actions or even revoking your registration.

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