In early America, a red door meant “welcome.” If a family had a red front door, tired travelers knew that their home was a welcoming place to rest and take comfort.
What is an ADV Part II Form?
An ADV II is a required submission to the Securities and Exchange Commission (SEC) by a professional investment advisor that specifies the investment style, assets under management and key officers of the firm. The form must be updated annually and be made available as public record for companies managing in excess of $25 million.
The form acts as a disclosure document for clients of the business and includes information such as services provided, fees levied, etc. Potential and current clients of an investment advisor should always review the ADV Form on file, as it provides transparent evidence of the firm and its operations.
Most advisors will offer a current Form ADV to any potential client early in the marketing process; in fact, investors should be immediately cautious of an advisor that does not freely offer the form upon request.