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Form ADV Part 3, also known as the Client Relationship Summary (CRS), is a required document for investment advisors that provides a summary of the advisor's services, fees, and conflicts of interest in an easily understandable format for clients.
Investment advisors registered with the Securities and Exchange Commission (SEC) or state regulators are required to file Form ADV Part 3.
To fill out Form ADV Part 3, advisors must provide information on their services, fees, account types, and potential conflicts of interest, using clear and straightforward language. The form must be updated annually and whenever there are significant changes.
The purpose of Form ADV Part 3 is to enhance transparency between investment advisors and their clients, allowing clients to better understand the advisor's services, risks, and costs associated with the investment.
Form ADV Part 3 must include information on the advisor's services, fees, disciplinary history, conflicts of interest, and a summary of the investment advisor's material business practices.
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