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Betterment publishes Form CRS (Customer Relationship Summary) and Form ADV Part 2, which are SEC-mandated disclosure documents required of registered investment advisers describing services, fees, conflicts of interest, and the firm's disciplinary history.
This analysis describes what Betterment's agreement states, permits, or reserves. It does not constitute a legal determination about enforceability. Regulatory applicability and practical outcomes may vary by jurisdiction, enforcement context, and individual circumstances. Read our methodology
This provision discloses that Betterment operates as a registered investment adviser subject to SEC Regulation Best Interest and Form CRS delivery requirements, and that Form ADV Part 2 brochure disclosures are available to customers as required under the Investment Advisers Act.
Under applicable SEC requirements, Betterment is required to provide Form CRS to retail investors at the time of account opening and Form ADV Part 2 to advisory clients, both of which contain material information about fees, services, conflicts of interest, and the firm's regulatory status.
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"Disclosures Form CRS Also review our Form CRS Conversation Starters. Form ADV Part 2Excerpt from Betterment's Terms of Use
1) REGULATORY LANDSCAPE: Form CRS delivery is required under SEC Regulation Best Interest (Reg BI) for broker-dealers and SEC Form ADV Part 2 delivery is required under the Investment Advisers Act of 1940 for registered investment advisers. The SEC is the primary enforcement authority. Failure to deliver or maintain compliant versions of these documents constitutes a regulatory violation subject to SEC examination and enforcement. 2) GOVERNANCE EXPOSURE: Medium. Compliance teams should confirm that Form CRS and Form ADV Part 2 are current, accurately reflect Betterment's services and fee structures, and are delivered to the appropriate client categories at the required times. Material changes to services or conflicts of interest require prompt updating of these documents. 3) JURISDICTION FLAGS: These disclosure obligations apply at the federal level to all Betterment advisory clients regardless of state of residence. State securities regulators may have independent review authority in certain circumstances. 4) CONTRACT AND VENDOR IMPLICATIONS: Institutions using Betterment Advisor Solutions should confirm whether they are receiving the appropriate version of Form ADV disclosures applicable to their relationship with Betterment and whether the disclosure of any conflicts of interest in Form ADV Part 2 is material to their due diligence assessment. 5) COMPLIANCE CONSIDERATIONS: Compliance teams should confirm that the Form CRS Conversation Starters referenced in the directory are operationally integrated into Betterment's customer onboarding process as contemplated by SEC guidance, and that Form ADV Part 2 is updated at least annually or upon material change as required under the Investment Advisers Act.
This provision discloses that Betterment operates as a registered investment adviser subject to SEC Regulation Best Interest and Form CRS delivery requirements, and that Form ADV Part 2 brochure disclosures are available to customers as required under the Investment Advisers Act.
Under applicable SEC requirements, Betterment is required to provide Form CRS to retail investors at the time of account opening and Form ADV Part 2 to advisory clients, both of which contain material information about fees, services, conflicts of interest, and the firm's regulatory status.
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