A Registered Investment Advisor (RIA) is a a firm or advisor that works in the invests advisory industry and is registered ether with the state securities authorities or the Securities and Exchange Commission (SEC).
These RIA consultants, although similar to investment advisors, are not the same and it’s important to not confuse the two. Financial advisor is a fairly general term that typically refers to brokers or registered representatives. Investment advisors refers to an individual or organization that is registered with a securities regulator that provides advice about these securities to their clients.
The Securities and Exchange Commission controls the majority of the RIA’s regulations for those that manage over $110 million in client assets. For RIAs that deal with assets around $100 million, the state securities have jurisdiction over the regulations. And for RIAs with less than $100 million in assets, they must register with their state (whatever state the RIA has their principal place of business). It’s essential to determine exactly which services RIA compliance consultants offer when it comes to RIA money transfers and other transactions. You do not want to be misinformed. Your best bet is to do thorough online research to find plenty of background information on both SEC and state advisers.
What If Your Entity Isn’t Established Yet?
A common question RIA compliance consultants get is if their clients can start the registration process before their entity is fully established. You can start working toward the investment application process for registration without establishing your entity that will serve as the investment. You should know, however, that your entity will need to be established before the filing of the advisor application is filed. Conducting a search of your state’s corporate name database to find the availability of your intended name for your new entity as well. As soon as you find an available name, you can submit your application on your firm’s behalf. Keep in mind that many state securities regulators do require a copy of its limited liability membership agreement.
Although working with finances and advisors can be extremely overwhelming if you’re not experienced or knowledgeable in that field, luckily there are plenty of experienced professionals who can help. Contact RIA compliance consultants today if you need assistance.