All RIA firms registered with the State of Massachusetts are required to pay annual registration fees for both the RIA firm and each IAR associated with the firm. The annual fees for Massachusetts are as follow:
Investment Advisor: $300
Investment Advisor Representative (IAR): $50
FINRA Annual IAR Processing Fee: $15.
Before you start the process of creating a new Registered Investment Advisor (RIA) Firm in the state of Massachusetts you should take the time to familiarize yourself with the process, fees, and requirements outlined below.
If you have a question about any of the information listed below, please feel free to contact us to schedule a complimentary RIA Registration Consultation.a
For an individual to file a registered investment advisor application with the State of Massachusetts, they must first apply to the Financial Industry Regulatory Authority (FINRA) to create an account (Entitlement) for their WebCRD/IARD online system (the web application for the registration of RIA and its representatives). FINRA does not regulate or supervise RIAs, but the State of Massachusetts uses FINRA’s WebCRD/IARD system to process applications.
The Form ADV Part 1 is the online component to your Firm’s registration application. Note: The Form ADV Part 1 primarily discloses information about the firm. Individual information is primarily disclosed in Form U4 as detailed below. There are two parts to the Part 1. Part 1A is for all RIAs (both SEC registered and state registered), and Part 1B is specific to state registered advisors. The Form ADV Part 1 is also the vehicle to upload your Firm’s Form ADV Part 2A (Firm Brochure) and Form ADV Part 2Bs (Brochure Supplements).
The Form ADV Part 2A acts as your Firm’s Disclosure Brochure. It is a narrative description of your services, fees, disciplinary disclosures, as well as several other firm details. The Form ADV Part 2A must be provided to all Clients and Prospective Clients. The State of Massachusetts requires that the Form ADV Part 2A be written in “plain English” and easily understood by your clients.
The Form ADV Part 2B is the paper brochure that IARs must (in most cases) provide to clients. This form contains employment, educational, conflict of interest, and disciplinary information for each IAR. Generally, Executive Officers, any person generating investment advice provided to clients, anyone selling or soliciting investment advice for the RIA, and any representative advising clients must have a Form ADV Part 2B.
Client Advisory Contract including the appropriate regulatory authority standards for client advisory contracts in the State of Massachusetts.
The firm’s written Policies and Procedures manual is the guiding supervisory document that your firm will use to maintain and enforce your firm’s internal policies on all aspects of your business, from the handling of client complaints to the training of new IARs. It also houses your firm’s other policies, including but not limited to, Business Continuity Plan, Information Security Policy, Proxy Voting Policy, and Insider Trading Policy.
The Firm’s Privacy Policy must be provided to all clients at the beginning of the client relationship and annually thereafter. It must disclose how the firm stores, handles and disseminates client information. The Privacy Policy is built to your firm’s specifications and designed to meet State of Massachusetts compliance requirements.
Code of Ethics ensuring the firm upholds the fiduciary standards required by the State of Massachusetts.
FINRA Entitlement: Yes
ADV1: Yes
ADV2A: Yes
ADV2B: Yes
Min Net Capital or Bond: $10k bond for discretionary (waived if principal jurisdiction)
Fee: $300.00
Invoices Required: Yes
Solicitor Registration: Yes
Fingerprints: No
Exam Requirement: Series 65
Interested in starting A RIA in Massachusetts?
Disclaimer: This information is recent as of October 15 2021