To start a Registered Investment Advisor (RIA) firm, you’ll need to:
Pass the Series 65 exam: This exam is administered by the Financial Industry Regulatory Authority (FINRA) and covers federal securities laws and investment advice.
Register with the SEC or state authorities: Depending on how much money you manage, you’ll need to register with either the SEC or state authorities.
File a Form ADV: This form includes a disclosure document that you’ll need to distribute to all clients.
Establish a legal entity: You’ll need to form a legal business entity for your RIA.
Choose a custodian and other vendors: You’ll need to select a custodian and other vendors to support your RIA.
Create a business plan: You’ll need to develop a business plan that includes your target client demographic.
Secure insurance: You’ll need to obtain insurance for your RIA.
Set up technology and software: You’ll need to choose software and tools for your RIA, such as wealth management, financial planning, CRM, and compliance.
Create a website and email address: You can use online tools to create your website, or you can hire a web design agency.
Develop a marketing plan: You’ll need to develop a marketing plan to launch your RIA, including how you’ll message your current clients and introduce them to your new firm.
The process to start an RIA can take several months. You can consult with an attorney to help you through the process, especially if you’re leaving a broker-dealer or wirehouse.