Every RIA firm needs to have at least one (1) individual Investment Advisor Representative (IAR). This individual must take and pass the Series 65 exam or the Series 7 and Series 66 examinations (in combination), or hold one of the following industry designations and be in good standing with the organization issuing such designations: CFP, CFA, PFS, CIC, or a ChCF.

Fees for registering an RIA firm vary depending on the type of registration (State vs. SEC), the number of states where the firm is required to register or make a notice filing, and the total number of Investment Advisor Representatives (IARs) requiring registration at the firm. 

SEC Registration Fees: If your firm qualifies for SEC registration, you will need to pay a $40 fee for the firm’s initial SEC registration. This fee may increase as your firm grows its assets under management (AUM), and needs to be paid every year as part of the annual registration renewal process. The good news is that SEC registration fees for a firm will not exceed $250 per year, regardless of AUM.

You will also need to pay Investment Advisor Representative registration fees to each state where your firm’s IARs require registration.  State IAR fees vary from state to state, and range from as little as $0 (Louisiana) to as much as $255 (Georgia) per IAR. 

Finally, SEC registered firms pay a state notice filing fee to their home state as well as any other states where a notice filing is required, such as when the firm exceeds the de minimis number of clients or the firm has a branch office.

State Registration Fees: If you are required to register your firm with a state, you must pay a fee for both the firm and any Investment Advisor Representatives operating in that state.

The approval timeline for an RIA firm varies and is dependent on a number of factors including, but not limited to, the type of registration (State vs. SEC), the complexity of the firm’s investment strategy, the general makeup of the firm’s business model, and any prior disciplinary history (whether disclosable or not, and including expunged records). 

Generally speaking, the approval of an RIA firm should occur between 30-90 days after the filing has been officially confirmed and deemed “complete”  by the applicable regulator.  Unfortunately, this is not always the case – some state securities regulators take anywhere from between 90 to 120 days, and in some cases longer.

The answer depends on your intended business model.  SEC Rule 203A-2 lists the types of RIA firms that must register with the U.S. Securities and Exchange Commission.  Any RIA that does not qualify to register with the SEC must apply for registration in the firm’s home state, as well as any other state(s) where registration is required.

where the firm’s principal office is located. In addition, state-registered RIA firms must also be registered in states where they keep a branch office or where the number of firm clients exceeds a state’s de minimis exemption.  In all states except Texas and Louisiana, the de minimis number of clients is five, meaning an RIA is not required to be registered in the state if they only have up to five clients. Texas and Louisiana are single-client de minimis states, meaning RIA firms must submit a notice filing in those states before taking on even the first client, and may then have up to five clients.  Before taking on a sixth client in any of the states, the RIA must apply for full registration and be approved by the relevant state securities division.

SEC registered RIA firms must be notice filed in their home state, which is the state where the firm’s principal office is located.  Additionally, SEC RIAs must be notice filed in any state where they keep a branch office or where the number of firm clients exceeds the state’s de minimis exemption.  For SEC RIAs, all states except Texas, Louisiana, New Hampshire, and Nebraska have a de minimis exemption of up to five clients before a notice filing is required.  Texas, Louisiana, New Hampshire, and Nebraska require a notice filing before the SEC RIA firm takes on even its first client.

At a minimum, all RIA firms must file the Form ADV Uniform Application for Investment Adviser Registration. The vast majority of RIA firms also must file at least one Form U4 Uniform Application for Securities Industry Registration, which is the application form for any registered Investment Adviser Representatives.  Most state securities regulators will also require additional documents to be filed directly with the regulatory agency, such as specimen client advisory contracts, a balance sheet, and documents evidencing legal entity formation.

Filing requirements vary depending on which securities industry regulator will have primary jurisdiction over your RIA firm. The SEC and states require, at a minimum, the filing of Form ADV.  However, the state securities regulators tend to require direct filing of additional documents, including, but not limited to, specimen client advisory contracts, a balance sheet, and documents evidencing legal entity formation. Each state’s requirements differ from all others, and you should contact us to determine your home state’s filing requirements, and the filing requirements for any other state where your RIA firm is required to be registered.

RIA firms are not required to have a website, unless of course they are filing a registration with the U.S. Securities and Exchange commission under Rule 203A-2(e) of  the Advisers Act (the Internet Investment Advisers exemption). However, a website is a critical marketing tool so if your firm is planning to have a website, you will need to ensure that your website meets specific requirements, such as record keeping requirements outlined in SEC Rule 204-2, as well as applicable state or SEC advertising rules.

Yes. As part of our turnkey registration process we will provide your firm with a complete Compliance Program, which includes all of the necessary compliance documents and a fully customized Compliance Manual that outlines your regulatory responsibilities. Once your firm has been approved, we can provide ongoing compliance support to ensure your new RIA continues to meet regulatory requirements.