Blogs > Your Money

Dave Patterson and Erin Preston, a father-daughter team of Certified Financial Planner® licensees, provide thoughts and suggestions on a broad collection of personal finance topics.  Information provided in this BLOG is intended to be of a general nature and may not be appropriate for all situations.  Readers should consult with their own financial advisors before relying on any information contained herein.

Tuesday, March 22, 2011

Want to Know More About Your Advisor?

With all the financial scams going around (think Madoff), it’s more important than ever to carefully check out any financial advisor you may be considering or even the one you are currently using. We noted in our last blog that a new disclosure document will soon be available to investors, Form ADV Part 2A and 2B. See our last blog posted on Sunday, March 20th, titled “New Disclosure Document Will Help Investors”, for details.

Another document is also available to investors, for review, called Form ADV Part I. Part I is a basic registration document that has to be filed with either the states an advisor works in or with the Securities and Exchange Commission, depending on the amount of “assets under management”, the advisor has. Previously, advisors with more than $25 million in assets under management had to register with the SEC and each state in which they had more than five clients. Now, that hurdle is $100 million in assets under management.

The new form ADV Part 2A must be filed by March 31st. Once it is filed and approved, both parts of the ADV will be available for review by investors on the Investment Adviser Public Disclosure website ( If you go to this site you can then select “Investment Adviser Search” to find the adviser firm or representative you are interested in.

Disclosures regarding arbitration, bankruptcy filings and civil or criminal actions against the advisor are included. Details regarding the business services offered, how the adviser is compensated and any potential conflicts of interest are included.

You can’t be too careful when it comes to seeking help with your finances. Do your homework and you'll be able to sleep better at night.


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