Certified Financial Planner (CFP) Exam 2025 – 400 Free Practice Questions to Pass the Exam

Form ADV has two main parts that provide crucial information about investment advisers: Part 1 includes information about the adviser's business, ownership, clients, and employees, while Part 2 requires advisers to prepare a narrative brochure for clients that describes their services, fees, and business practices, which is intended to be more user-friendly.

The disclosure requirements reflect the SEC's commitment to transparency and consumer protection by ensuring that clients and potential clients receive comprehensive, easy-to-understand information about the advisory services offered to them. Depending on the statements regarding Form ADV, if all provided statements accurately describe these disclosure requirements, that would validate the correctness of the choice indicating that options I, II, and III are all correct.

If there are additional details or conditions mentioned in the statements that further clarify the intent and structure of Form ADV, those would also reinforce the idea that multiple statements are indeed accurate, which aligns with the selection of all options as correct. As such, the chosen answer reflects a complete understanding of the form's overall role in providing necessary disclosures to clients in the investment advisory context.