RIA Setup & Registration
Have you ever considered starting your own registered investment adviser (RIA) firm? If so, there are a number of things to consider when choosing the path of independence. This week, on “Ask An AdLawExpert,” Michelle Atlas, J.D., addresses how to form a new RIA and the minimum requirements.
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Full Transcript:
There are a number of things to consider when deciding to open your own registered investment advisory. First of all, you”ll need to make sure you have the proper licensing for an advisory business. Sometimes a CFP will qualify you for that in your state, depending on your state. And then you want to look at the type of entity you want to form for tax purposes and liability purposes. And from there, there are a myriad of forms that need to be filed either through your state or the SEC. If you believe that you’re going to have a more than 100 million under management come with you, immediately or in a timely manner, then you may want to start with an SEC filing. If not, you want to look at the state where you are a resident and where your office will be. But also, look at the other states; you may need to have clients in other states and you may need to be registered in those states, as well. So beyond that, planning stages, then you need to complete all of the forms and be prepared to have a policies and procedures manual that meets your needs and the way that you want to run your business. Along with agreements with your clients [or] with any advisors, you may bring with you. There are a myriad of forms, from business continuity to privacy planning, that you’ll need to prepare. So there’s a number of steps to getting started, but I think you’ll be happy once it’s done.