UBCNews - Business - Common ADV Form Filing Errors & How Automation Helps RIAs Stay Compliant

Episode Date: March 10, 2026

Welcome back, everyone. Today we're tackling something that keeps a lot of Chief Compliance Officers up at night - Form ADV filing errors. You know, registration deficiencies show up consistently in RIA exams year after year. It's a persistent challenge. RIA Compliance Technology City: Scottsdale Address: 10031 E Dynamite Blvd Suite 240 Website: https://riacomptech.com/

Welcome back, everyone. Today we're tackling something that keeps a lot of chief compliance officers up at night. Form ADV filing errors. You know, registration deficiencies show up consistently in RIA exams year after year. It's a persistent challenge. It really is. And the thing is, most of these errors aren't intentional. They're often the result of manual processes, spreadsheets, email chains, disconnected data living in different systems. It creates this perfect storm for mistakes. So what are the most common mistakes you're seeing out there? Well, three big ones come up again and again. First, inconsistencies between part one and part two of the ADV. You've got one format that's filled out online

and another that's a narrative brochure. Keeping those aligned is trickier than it sounds. Second, inaccurate AUM calculations. Advisors sometimes include assets under advisement instead of just those under continuous management, which inflates the number. And third, failing to update material changes within 30 days, things like ownership shifts, new personnel, or office relocations. Right. And I've heard fee schedule misalignment is a problem too.

Fee-related exam issues frequently involve advisors charging fees that don't match their form ADV disclosures. Exactly. It's usually not malicious. Someone updates a client agreement, but forgets to update the ADV. But regulators don't really forgive oversights like that. I remember early in my career, I once spent three days tracking down why a client's fee didn't match our ADV. Turned out someone had negotiated a custom rate

and never told compliance. Lesson learned the hard way. Mm-hmm, that's rough. So what about conflicts of interest? How should CCOs approach those? Disclose everything. Even if a conflict seems immaterial, Put it in there. The SEC wants thorough transparency. Use plain English. Avoid vague terms like

May when describing services. Stick to declarative statements like will or do. If there's any chance you could benefit from something related to a client, it needs to be disclosed. Full disclosure always, or put another way, transparency beats ambiguity every time. That makes sense. Now, let's talk about the SEC's current focus areas. What should advisors be paying attention to in 2026? The SEC is zeroing in on four areas, marketing, artificial intelligence, outsourcing risks, and conflicts of interest. They're looking closely at how advisors disclose third-party ratings, performance results,

and AI-driven investment tools. If you're using AI in any capacity, you need to assess the materiality of those risks. Are clients being steered toward products that benefit the firm more than the client? That point about materiality of AI risks sets up our next piece, how technology can actually streamline the ADV process itself. But first, a quick word from our sponsor. RIA compliance technology builds compliance management solutions designed by compliance professionals for compliance professionals.

Our platform helps RIA's streamline Form ADV updates, reduce manual data entry, and maintain centralized record keeping with automated deadline tracking and notifications. We help firms meet regulation, collection, review, and archiving standards with a simple, structured approach. Learn more at riacomptech.com.

Picking up on materiality of AI risks, how does automation help CCOs manage the entire ADV filing workflow? Great question. Think about the typical manual workflow. You're building spreadsheets, emailing department heads for updates, manually comparing changes against last year's filing, reconciling inconsistencies, tracking approvals through endless email threads.

It's exhausting and error prone. Definitely sounds like a lot of moving parts. And I bet somewhere in there is a file called Final Final Version 3, right? Ha, exactly. Compliance technology changes that by systematizing updates year round. Instead of treating the annual update as a fire drill, firms can keep ADV-related information organized continuously. Built-in compliance calendars send automated alerts. You can assign ownership to specific input streams like fees, marketing language, personnel changes,

and everything lives in a centralized, secure repository. So you're really reducing those manual touch points and creating a clearer review trail? Exactly. And here's the real benefit, exam readiness. When regulators come knocking, you can show what changed, why it changed, who reviewed it, and where the supporting documentation is. That audit trail is gold. I can imagine that takes a huge weight off the CCO's shoulders.

Have you seen this make a difference in actual outcomes? Oh, absolutely. Fewer revisions, less time coordinating inputs across the business, more confidence in accuracy. One CCO I worked with told me they went from version 7 of their ADV draft to just two clean iterations. The largest benefit, the CCO no longer carries the entire process alone. That's a big deal. So to everyone listening, if you're a CCO dealing with scattered data and manual workflows, what's one practical step you can take right now?

Start by documenting your current process. Map out where your data lives, who owns each input, and where bottlenecks happen. Once you see the full picture, it's easier to identify what automation can solve. And remember, keeping things aligned matters. Make sure your fee schedules, service descriptions, and business practices match across all three parts of the ADV. Right. And don't forget to fund your IARD account at least a week before the deadline. The SEC doesn't accept filings without sufficient funds and last-minute system traffic can cause delays. Yes, that's a common pitfall.

Also, if you have a December fiscal year-end, your deadline is typically 90 days after year-end, which usually falls on March 31st, though it can be March 30th in a leap year. Don't procrastinate, allocate dedicated time to this task. The quality of your filing depends on it. Great advice. Before we wrap up, any final thoughts on how streamlining ADV compliance elevates in RIA's overall risk management? When your compliance process is structurally.

and automated, you're better position for strategic planning. You're spending less time chasing information and more time identifying risks, anticipating regulatory shifts and advising leadership. Compliance becomes proactive, not reactive. Love that. Thanks so much for breaking this down today. Have you ever wondered how much time your team could save with a streamlined compliance process? Worth considering. And if you want to learn more, visit riacomptech.com.com.com.