RIA Glossary / Firm Roles & Structure

Control Person

Quick Answer
A control person is anyone who directly or indirectly has the power to direct the management or policies of an investment adviser, whether through ownership, contract, or other means. Control persons must be disclosed on Form ADV Schedule A or B.
Reviewed by Sam Carter, Director of Registration Services
Last reviewed September 18, 2026

Who Is a “Control Person” at an RIA?

Control isn’t limited to majority owners — someone with a smaller ownership stake but significant influence over firm decisions, or an officer with broad authority, can also qualify as a control person. The SEC’s threshold guidance generally treats 25% or greater ownership as presumptive control, but the actual test looks at real decision-making power, not just equity percentage.

Accurate control person disclosure matters for transparency around who actually runs the firm, and it feeds into other obligations, including background disclosure requirements for those individuals.

Why it Matters

Incomplete or outdated control person disclosures are a recurring Form ADV accuracy issue, particularly after ownership changes, partner buy-ins, or leadership transitions that firms don’t promptly reflect in their filings.

Frequently Asked Questions

Does a minority owner count as a control person?

Possibly — the test is based on actual influence over firm management, not strictly ownership percentage, though 25%+ ownership is generally presumed to be control.

Where is control person information disclosed?

On Form ADV, typically in Schedule A (direct owners and executives) and Schedule B (indirect owners).
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Related Terms

Form ADV

What is Form ADV? Form ADV is filed and maintained through the IARD system and consists

Related Person

Who Is a “Related Person” at an RIA? Related persons commonly include affiliated broker-dealers, insurance agencies,

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