Form ADV Part 3 (IARD System Instructions)
On June 5, 2019, the Securities and Exchange Commission (the “Commission”) adopted Form CRS and new rules, as well as amendments to its forms and rules, under both the Investment Advisers Act of 1940 (“Advisers Act”) and the Securities Exchange Act of 1934 (“Exchange Act”).
Form CRS and its related rules require SEC-registered investment advisers and SEC-registered broker-dealers (together, “firms”) to deliver to retail investors a brief customer or client relationship summary that provides information about the firm. Firms must file their relationship summaries with the Commission.
The relationship summary is designed to assist retail investors with the process of deciding whether to (i) establish an investment advisory or brokerage relationship, (ii) engage a particular firm or financial professional, or (iii) terminate or switch a relationship or specific service.
Firms must follow certain requirements concerning their relationship summaries including formatting, filing, delivery, updating, and recordkeeping requirements.
If you are required to file and deliver a relationship summary, it is important to be familiar with Form CRS instructions and related rules. Please see the following resources for more information:
- Form ADV Part 3 Quick Reference Guide
- Form CRS Frequently Asked Questions (SEC)
- Small Entity Compliance Guide (SEC)
- Regulation Best Interest, Form CRS and Related Interpretations (SEC Resources)
For Additional Help:
Firms may contact SEC staff at [email protected] for additional guidance.