Form ADV Annual Update – Key Steps for Compliance

With the annual ADV filing deadline approaching, registered investment advisers must prioritize updating their Form ADV to meet federal and state requirements. Both SEC (Securities and Exchange Commission) and state-registered advisers are required to file the annual updated amendment within 90 days of their fiscal year-end, which for most firms means around March 31st. This filing provides regulators with current information on an adviser’s business operations, investment strategy, and potential conflicts of interest, keeping records accurate and compliant with regulatory standards.

What is Form ADV?

Form ADV is a multi-part disclosure document required under the Investment Advisers Act of 1940. It is filed electronically through the Investment Adviser Registration Depository (IARD) and consists of four parts:

• Part 1A – Provides information on the adviser’s business, ownership, regulatory history, and disciplinary actions.
• Part 1B – Required for state-registered advisers, includes additional questions relevant to state regulations.
• Part 2A (Brochure) – Outlines the firm’s services, fees, investment approach, and conflicts of interest.
• Part 2B (Brochure Supplement) – Discloses qualifications and background information on key advisory personnel.

The updated amendment should reflect any material changes, including:

• Changes in assets under management (AUM)
• New services or business lines
• Ownership or organizational structure modifications
• Regulatory actions or legal proceedings
• Updates to fee structures or conflicts of interest

Best Practices for Filing the Annual ADV Update

Investment advisers can take proactive steps to stay ahead of the Form ADV filing process. Starting early allows firms to review and verify business information, financials, and disclosures before the deadline.

• Monitor Regulatory Changes: Stay informed about updates to SEC or state regulations that may impact reporting requirements.
• Conduct Internal Compliance Reviews: Involve legal and compliance teams to review potential conflicts of interest or disclosure gaps.
• Communicate with Clients: If there are material changes in Part 2A, advisers must promptly provide clients with an updated brochure or a summary of key changes.
• Document the Process: Keep records of internal reviews, updates, and correspondence with regulators to demonstrate compliance efforts.

The annual Form ADV update is more than a check-the-box task, it is an important compliance obligation that both regulators and investors rely on. Careful diligence should be taken when completing the form and investment advisers should begin the process early.

How Petra Can Help

Petra Funds Group’s compliance team has decades of experience managing SEC regulatory compliance programs for private fund advisers, as well as programs for AML/KYC compliance. The group’s expertise enables them to provide insight and guidance on a wide range of regulatory compliance services, from investment adviser registration to ongoing compliance support to performing SEC mock examinations. Learn more about Petra’s comprehensive compliance offering and contact Jesse Brown with questions.