Form Adv (Paper Version) General Instructions Page 28
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357. Client: Any of your firm’s investment advisory clients. This term includes clients from
which your firm receives no compensation, such as family members of your supervised
persons. If your firm also provides other services (e.g., accounting services), this term does
not include clients that are not investment advisory clients. [Used throughout Form ADV
and Form ADV-W]
8. Commodity Derivative: Exposures to commodities that you do not hold physically,
whether held synthetically or through derivatives (whether cash or physically settled). [Used
in: Part 1A, Schedule D]
9. Control: The power, directly or indirectly, to direct the management or policies of a person,
whether through ownership of securities, by contract, or otherwise.
• Each of your firm’s officers, partners, or directors exercising executive responsibility (or
persons having similar status or functions) is presumed to control your firm.
• A person is presumed to control a corporation if the person: (i) directly or indirectly has
the right to vote 25 percent or more of a class of the corporation’s voting securities; or (ii)
has the power to sell or direct the sale of 25 percent or more of a class of the
corporation’s voting securities.
• A person is presumed to control a partnership if the person has the right to receive upon
dissolution, or has contributed, 25 percent or more of the capital of the partnership.
• A person is presumed to control a limited liability company (“LLC”) if the person: (i)
directly or indirectly has the right to vote 25 percent or more of a class of the interests of
the LLC; (ii) has the right to receive upon dissolution, or has contributed, 25 percent or
more of the capital of the LLC; or (iii) is an elected manager of the LLC.
• A person is presumed to control a trust if the person is a trustee or managing agent of
the trust.
[Used in: General Instructions; Part 1A, Instructions, Items 2, 7, 10, 11, 12, Schedules A, B,
C, D, R; DRPs]
10. Credit Derivative: Single name credit default swap, including loan credit default swap,
credit default swap referencing a standardized basket of credit entities, including credit
default swap indices and indices referencing leveraged loans, and credit default swap
referencing bespoke basket or tranche of collateralized debt obligations and collateralized
loan obligations (including cash flow and synthetic) other than mortgage backed securities.
[Used in: Part 1A, Schedule D]
11. Custody: Holding, directly or indirectly, client funds or securities, or having any authority
to obtain possession of them. You have custody if a related person holds, directly or
indirectly, client funds or securities, or has any authority to obtain possession of them, in
connection with advisory services you provide to clients. Custody includes:
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