Which form must an investment advisor disclose their relationship with an affiliated broker-dealer?

Which form must an investment advisor disclose their relationship with an affiliated broker-dealer?

• A. Form U4
• B. Form ADV
• C. Form BD
• D. Form ADV II

Answer: (D)

The correct form for an investment advisor to disclose their relationship with an affiliated broker-dealer is Form ADV. This form is specifically designed for investment advisers to provide both the clients and regulators with comprehensive information about their business, including the nature of their relationships with affiliated entities. Part II of Form ADV, which is sometimes referred to as Form ADV II, contains important disclosures regarding the adviser’s business practices, fees, and conflicts of interest. When an investment advisor has a relationship with an affiliated broker-dealer, it is vital to disclose this relationship to clients, as it can create potential conflicts of interest. Form ADV ensures transparency in the advisor’s operations and helps clients make informed decisions about their investments and the potential risks involved. It is a crucial regulatory document in the realm of investment management, allowing clients to understand better who they are working with and any possible affiliations that may affect their investment choices.

The correct form for an investment advisor to disclose their relationship with an affiliated broker-dealer is Form ADV. This form is specifically designed for investment advisers to provide both the clients and regulators with comprehensive information about their business, including the nature of their relationships with affiliated entities.

Part II of Form ADV, which is sometimes referred to as Form ADV II, contains important disclosures regarding the adviser’s business practices, fees, and conflicts of interest. When an investment advisor has a relationship with an affiliated broker-dealer, it is vital to disclose this relationship to clients, as it can create potential conflicts of interest.

Form ADV ensures transparency in the advisor’s operations and helps clients make informed decisions about their investments and the potential risks involved. It is a crucial regulatory document in the realm of investment management, allowing clients to understand better who they are working with and any possible affiliations that may affect their investment choices.