The ABCs of ADV: Using Orion Connect to Prepare for Filing SEC Form ADV

Whether you are the compliance officer at your firm or someone else is responsible, managing regulatory requirements and internal processes can be challenging. Orion provides tools to help complete compliance obligations more efficiently, including preparing to file SEC Form ADV.

This guide explains how to manage settings for SEC Form ADV data in Orion Connect and how to pull that data from the Form ADV Compliance Dashboard.

How to Manage Settings for Form ADV Data

Orion Connect’s ADV Dashboard pulls the information needed for Form ADV reporting with one click. However, certain data fields must be set up and maintained to ensure accurate information.

Edit Accounts

If there are accounts that should be excluded from ADV reporting, determine if a unique identifier can be used to group these accounts (e.g., by custodian, management style, or fund family). Once an identifier is chosen, follow these steps:

1. 1.Open the Portfolio Audit App
2. 2.Go to the Accounts grid
3. 3.Highlight all related items to edit
4. 4.Right-click and select “Edit Accounts”
5. 5.In the pop-up box, select “ADV Reportable” in the “Field to Update” drop-down
6. 6.Ensure the box is unchecked in the “Enter New Field Value” line
7. 7.Click “Add Change”
8. 8.Click “Save”

Repeat as needed for all necessary groups.

Edit Products

To exclude products from ADV reporting:

1. 1.Open the Products and Prices App
2. 2.Locate the product to remove
3. 3.Right-click and select “Edit Product”
4. 4.Uncheck the box in the “ADV Reportable” field
5. 5.Click “Save”

Repeat as needed for all necessary products.

Edit Assets

To exclude assets from ADV reporting:

1. 1.Open the Portfolio Audit App
2. 2.Locate the account containing the asset(s)
3. 3.Right-click and select “Assets”
4. 4.Locate and right-click on the asset, then select “Edit Asset”
5. 5.Uncheck the box in the “ADV Reportable” field
6. 6.Click “Save”

Repeat as needed for all necessary assets.

Assign ADV Client Category

To group clients by category, first identify primary client types (e.g., Individuals, High Net Worth Individuals). To assign households to these groups:

1. 1.Open the Portfolio Audit App
2. 2.In the Households grid, sort by “Current Value,” highest to lowest
3. 3.Highlight households with $1 million or more in investable assets for High Net Worth Individuals, or less than $1 million for Individuals
4. 4.Right-click and select “Edit Households”
5. 5.In the pop-up box, select “ADV Client Category” in the “Field to Update” drop-down
6. 6.Select the correct category in the “Enter New Field Value” drop-down
7. 7.Click “Add Change”
8. 8.Click “Save”

Repeat until all households are accurately categorized.

How to Compile AUM Data for SEC Form ADV

The SEC requires reporting client AUM on Form ADV by client type, percentage of AUM, and custodian. The Orion ADV Compliance Dashboard compiles all these items into a single report.

From the Orion Connect home screen:

• ​Go to the Compliance App
• ​Select “ADV Dashboard” under the “Disclose” section
• ​View an overview of all firm data needed for Form ADV

The data is broken down into sections such as regulatory AUM, discretionary AUM, AUM by client category, and more. Hover over Information icons for descriptions or click section titles for detailed data points. Any view can be exported to Excel to help compile Form ADV information.

Update Unassigned ADV Asset Categories

If “Unassigned” appears in the ADV Asset Category due to missing product type or subtype, assign them as follows:

1. 1.Select the “SMA AUM ADV Asset Category” tile heading
2. 2.Type “Unassigned” in the cell below the ADV Category column heading
3. 3.Right-click on each product and select “Change Product ADV Category”
4. 4.In the pop-up box, use the drop-down to assign the ADV Category based on your knowledge of the product
5. 5.Click “OK”

Repeat until all products are accurately assigned.

For more information about Form ADV or other compliance processes, contact the Orion Compliance Team at compliance@orionadvisor.com.