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Form ADV Part 1A Item 5F(1) · Answer type: yn · Item 5F - Regulatory Assets Under Management
Item 5F(1) asks whether the firm provides continuous and regular supervisory or management services to securities portfolios. This Yes/No question determines whether the firm qualifies to report regulatory assets under management (RAUM) in the rest of Item 5F.
Continuous and regular supervision means ongoing portfolio oversight, not one-time advice or project-based work. Examples include daily monitoring of client accounts, regular rebalancing decisions, ongoing security selection and trading, quarterly portfolio reviews with adjustments, or discretionary management where the adviser makes investment decisions without asking permission each time.
This differs from episodic services like annual financial planning meetings, one-off investment recommendations, educational seminars, or project consulting that does not include day-to-day account oversight. Firms providing only limited or occasional advice without continuous portfolio supervision typically answer No to 5F(1).
The question also requires securities portfolio focus. Supervision of insurance products only, real estate management without securities, or cash management alone might not qualify as "securities portfolios" for this question. The firm applies the definition based on SEC guidance and its business model.
5F(1) acts as a gateway to the rest of Item 5F. Firms answering Yes typically report dollar amounts and account counts in fields like 5F(2)(c) total RAUM. Firms answering No usually show zero or blank RAUM figures because they do not claim continuous securities portfolio management.
Do not confuse 5F(1) with 5G(1) financial planning services that can be one-time or periodic, or 5G(2) portfolio management for individuals that overlaps but focuses on the client type rather than the continuous nature.
Yes
The firm marks Yes when it provides ongoing supervisory or management services to securities portfolios - the gateway that lets it report regulatory AUM figures in the rest of Item 5F (for example continuous monitoring, rebalancing, and discretionary trading, not a one-time plan).
No
The firm does not claim continuous and regular securities portfolio supervision on this question. RAUM rows in Item 5F are typically blank or zero when this box is No.
5F(1) - Do you provide continuous and regular supervisory or management services to securities portfolios? (Yes / No).
This question sits at the start of Item 5F, "Regulatory Assets Under Management." The answer determines whether firms complete the rest of the Item 5F RAUM table or leave it blank.
5F(1) separates traditional investment management firms from advisers offering other services. A Yes here typically leads to RAUM figures showing the scale of assets under continuous supervision. A No often indicates a planning-focused, consulting, or educational business model without ongoing portfolio management.
If you want a firm for day-to-day investment management, look for Yes on 5F(1) combined with meaningful RAUM figures in 5F(2)(c). If you need project-based advice without ongoing management, a No here with Yes answers in Item 5G services might suit you better.
A Yes does not tell you the quality of supervision, investment approach, or performance results. Some firms with continuous oversight underperform while others excel. It only confirms the firm claims ongoing portfolio management as part of its reported business model.
The answer also does not indicate whether the management is discretionary (the adviser can trade without asking) or non-discretionary (client approval required). Those details appear separately in 5F(2)(a) and 5F(2)(b) for firms answering Yes to 5F(1).
Yes
Expect to see RAUM dollar amounts in the Item 5F table on the firm's Best Investors ADV panel. The firm reports continuous securities portfolio supervision qualifying for regulatory AUM reporting. Check 5F(2)(c) total RAUM for the scale and discretionary vs non-discretionary breakdowns.
Also confirm what services the firm provides beyond portfolio management by reviewing Item 5G service checkboxes - many continuous management firms also offer financial planning, consulting, or other advice.
No
The firm does not claim continuous and regular securities portfolio supervision on this question. Expect zero or blank RAUM figures in the Item 5F table. Look at Item 5G services and Item 5E compensation to understand what the firm does offer instead - often planning, consulting, education, or project-based advice.
The 5F(1) question appears at the top of Item 5F on the firm's Best Investors ADV panel. When the answer is No, the rest of Item 5F may show minimal data.