Guide to the Annual Updating Amendment of Form ADV

Form ADV, or the Uniform Application for Investment Adviser Registration and Report by Exempt Reporting Adviser, is a requirement to register as an investment advisor with the Securities and Exchange Commission (SEC) and state regulators. You can’t just file once and forget about it, though. Federal regulations require regular updates to your form. It’s important to know what the annual updating amendment to Form ADV means for your firm, as well as how to ensure compliance.

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What Is the Annual Updating Amendment to Form ADV?

Form ADV collects information about your firm and its operations. The SEC requires Form ADV if you want to register as an investment advisor. You’ll submit this form through IARD, the Investment Adviser Registration Depository System.

Annual updating is also a requirement for Form ADV. Specifically, you must:

Update Form ADV Part 1 and Form ADV Part 2 at least annually
Submit your updates within 90 days of the end of your fiscal year

Other-than-annual amendments are required when there’s a material change to the information in Form ADV. For example, changing your fee structure or introducing a new service offering to clients is a material change. Just be aware that other-than-annual amendment filings are not a substitute for the required annual update.

Form ADV Part 3 (Form CRS), which is your customer relationship summary, also has required updates. Instead of annual updates, you’re required to submit an updated form within 30 days if any information in your Form CRS becomes materially inaccurate.

Form ADV Annual Update Checklist

A financial advisor compiles information for the annual updating amendment to Form ADV.

If it’s your first time making annual updates to your Form ADV, you’ll need to know what to do. This checklist can help you navigate the update requirements.

Mark your calendar. The deadline to submit your updated annual Form ADV is 90 days from the end of your fiscal year. So, if your firm’s fiscal year ends on December 31, you’d need to have your updates completed by March 30 of the following year, at the latest. It’s important to start your preparations early so you can meet the annual updating amendment deadline. (Tip: If the deadline falls on a weekend, aim to get your updated form in on the Friday before, at the latest.)
Know what you need to update. RIAs must update responses to all items listed in Form ADV Parts 1A and 1B and Form ADV Parts 2A and 2B, as it applies to their firm. If you completed any schedules when you initially filled out your Form ADV, you’ll need to update those, as well.
Familiarize yourself with Form ADV changes. Regulatory shifts can result in new additions to Form ADV or the removal of certain items. Reviewing the list of what’s required since your last filing can eliminate any surprises once you’re ready to start updating your form.
Organize your information. Form ADV asks questions about the number of clients you have, the assets you manage, the fees you charge and other aspects of your business. Pulling the relevant numbers from your records before you begin your updates saves you the trouble of having to chase down those details later.
Take your time. Rushing to complete Form ADV updates can result in inaccuracies, which could lead to questions from the SEC. Review your previous answers to each item and update as needed. Keep in mind that some of the information found in Part 1 overlaps with items in Part 2, so it’s important to check both for accuracy and consistency.
Fund your IARD account. You’ll also pay a fee to submit an updated Form ADV. That fee you pay is determined by your firm’s assets under management. You’ll need to have funds in your IARD Flex-Funding account before you can complete your updated filing.
Run a completeness check. IARD has a completeness check tool that can help pinpoint any items you’ve overlooked. This check also tells you if you have enough money in your IARD account to cover the required fees. Keep in mind that the completeness check only tells you if you’ve left a required field blank – it won’t tell you if the information in your Form ADV is accurate.

Advisor Resources

If you find the amendment requirements or process confusing, help is available. The SEC maintains a lengthy list of FAQs about IARD and the amendment process. You can also contact the Investment Adviser Regulation Office (IARO) to ask interpretive questions about Form ADV. Their contact information is as follows:

By phone: (202) 551-6999
By email: IARDLIVE@sec.gov

According to the SEC website, submitting a detailed email is the best way to get a quick response.

Frequently Asked Questions (FAQs)

How Often Does Form ADV Need to Be Updated?

Form ADV updates are required at least once annually, within 90 days of the end of your firm’s fiscal year. Other-than-annual amendments are required within 30 days if there’s a material change to the information in your Form ADV.

How Do You Update Form ADV?

You’ll log in to IARD to submit an updated Form ADV. Before you can complete your filing, you’ll need to pay the required fees. You must fund your IARD Flex-Funding account in advance. Your firm’s AUM determines the fee that you pay.

Why Does the SEC Require Annual Updating for Form ADV?

The SEC requires RIAs to update Form ADV at least once a year to ensure transparency and give the public access to accurate information about how a firm operates. Failing to update your Form ADV annually (and at other times when there’s a material change) can result in fines and potentially lead to revocation of your registration.

Bottom Line

A financial advisor reviews the annual updating amendment to Form ADV.

Updating Form ADV can be time-consuming, but it’s necessary for compliance. Keeping good records and knowing what to expect going in can make the process as smooth as possible. Working closely with a compliance specialist or financial advisor can further streamline the process and reduce any potential mistakes. Staying proactive with Form ADV updates helps you to protect your firm’s reputation, and keeps you focused on serving your clients effectively.

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