Use Form ADV to Check a Financial Advisor’s Record
This free disclosure document reveals information about an advisor’s fee structure and firm history to their management style and any misconduct. Form ADV (“the Uniform Application for Investment Advisor Registration”) is one of the most important documents to check if you’re going to hire an investment advisor (or already have one). You can see an advisor's Form ADV on the Investment Adviser Public Disclosure website at adviserinfo.sec.gov . If the investment advisor is state regulated, you can also check state regulator websites where the advisor operates.
The purpose of Form ADV
Form ADV is a mandatory disclosure document that investment advisors who are registered with the U.S. Securities and Exchange Commission (SEC) or state securities authorities must file. Form ADV is a combination business profile, resume and rap sheet, and it contains the following:
- A description of services, the types and number of clients served and the amount of assets managed.
- Information about the people providing investment advice at the firm.
- An explanation of fees and billing practices.
- The company’s history and principal players’ certifications, education and work history.
- Any disciplinary actions (regulatory or judicial) taken due to misconduct.
It’s not just full-service investment advisors and firms employing financial advisors that are required to file Form ADV. Robo-advisors must also file Form ADV.
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What to look for in Form ADV
There are three parts to Form ADV.
- Form ADV Part I lays out the information mentioned above plus more details about the advisor’s background and business .
- Form ADV Part II is what the SEC calls the “narrative brochure” and contains the meat of what you want to know. This isn’t a fluffy sales brochure diluting any dirt with vague language. It’s a plain-English explainer about the person or firm .
- Form ADV Part III (Form CRS; the Client Relationship Summary) is a condensed (often two pages), plain-English document for retail investors. It summarizes information about services, fees, conflicts of interest and disciplinary history. .
Pay particular attention to the sections that cover:
- Fees charged and how compensation is structured.
- Potential risks for clients (exposure to volatile securities, for example).
- Potential conflicts of interest that could affect the recommendations they make.
- Disciplinary information (against the firm, advisor or key personnel in the company).
- Whether the individual or firm has filed for bankruptcy.
🤓 Nerdy Tip
Part 2 of the ADV usually contains the advisor’s fee schedule. If an investment advisor receives compensation for recommending securities products, you’ll see the relationship disclosed in Form ADV. If they are paid based on a percentage of assets managed or a flat-rate for one-off services, that will be spelled out.
Don’t be surprised to see disciplinary history disclosure on an advisor’s record; 7% of financial advisors have been cited for misconduct . Among some of the largest advisory firms, more than 15% of advisors have misconduct records. If you see disciplinary actions listed for the person or firm you're considering, that may be a sign to continue your search for help elsewhere.
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AD Advertisement Go beyond the background check
Investment advisors you’re considering hiring should readily offer a copy of their Form ADV very early in the get-to-know-each-other process. Consider it a red flag if they don’t. SEC rules require advisors to give existing clients an updated version every year and whenever big changes occur.
Beyond Form ADV, consider three things.
1. Are they reputable in other areas of their field?
If a provider offers services beyond investment advice, verify any required licenses with the appropriate regulators. For example, some financial advisors are also accountants, financial planners or insurance salespeople.
2. Are they good at explaining things?
Most investment advisors offer a free consultation with potential clients. Use that opportunity to ask the investment advisor to describe her philosophy, fee schedule and services. That can give you a sense of how well your personalities mesh and help ensure that the advisor’s terms haven’t changed since the last ADV filing.
3. Are you comfortable asking questions?
Even after you’ve hired a money pro, don’t stop asking questions. Ask why the financial advisor recommends a particular product. Make sure they’re pitching the insurance policy or mutual fund from XYZ company because it’s the best one for you, not because it pads their bottom line. If they are a fiduciary , they are required to put your best interests before their own. You can see an investment advisor's Form ADV on the Investment Adviser Public Disclosure website at adviserinfo.sec.gov , which is one more reason it’s essential to review this important document.
» Not sure who to hire for help? See our guide to choosing a financial advisor .
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- 1. SEC. Uniform Application for Investment Adviser Registration. Accessed May 22, 2026.
- 2. SEC. PART 2: Uniform Requirements for the Investment Adviser Brochure and Brochure Supplements. Accessed May 22, 2026.
- 3. SEC. Form ADV, Part 3: Instructions to Form CRS. Accessed May 22, 2026.
- 4. Harvard Business School. Charting Financial Adviser Misconduct: The Effectiveness of 'Naming and Shaming'. Accessed May 22, 2026.
