SIE Understanding Products and Their Risks Question 27: Answer and Explanation

Question: 27

Which of the following is included on a firm's Form ADV?

• A. Names under which the firm does business and states in which it does business
• B. Better Business Bureau rating
• C. YouTube channels used for marketing services
• D. Each investment adviser representative's client list

Correct Answer: A

Explanation:

A: The Form ADV shows all names under which the firm does investment advisory business as well as whether the firm provides the following services: broker-dealer, bank, insurance broker or agent, commodity pool operation or commodity trading adviser, registered municipal adviser, accountant or accounting firm, or lawyer or law firm. It also shows the states in which business is done under each name. Although the Better Business Bureau rating, Choice B, is not on the Form ADV, one could contact the Better Business Bureau because it indicates a business's good faith effort to respond to customer complaints. Although YouTube channels, Choice C, are not on the Form ADV, it does list social media websites, including website addresses for accounts on publicly available social media platforms where the firm or its representatives control the content (including, but not limited to, Twitter, Facebook and/or LinkedIn). Client lists, Choice D, are confidential and are not to be made public.