Blog Article

RIA Compliance: Business Card Do’s and Don’ts

Apr 13, 2015

One of the most common RIA regulatory compliance questions relates to the use of business cards.

We often hear that the registered investment adviser (RIA) business is a business of relationships and in relationships nothing is more important than a first impression. When making an introduction, an individual – the investment adviser representative (IAR) of the RIA wants to be sure to be clear about his or her firm’s focus, principles, and, of course, follow-up information.  To set the ground work for a follow-up, perhaps nothing has been more helpful than the timeless and traditional exchange business cards – these exchanges leave a new friend, colleague, or potential client with a physical reminder of the meeting and also provide a reminder for contacting each other in the future.

As RIA compliance consultants, we frequently field a number of business card-related investment adviser compliance questions. To start, it is important to remember that business cards are considered a form of advertising and are thus subject to investment adviser advertising rules. While rules may vary by state and thus it’s vital to check with each applicable jurisdiction, below are a few common Do’s and Don’ts to consider when creating business cards.

Do:

  • Make it clear who the IAR is, as some individuals will infer that they personally are an RIA, whereas it is actually the entity that is the registered investment adviser firm.
  • Make sure to use the same contact information that can be found on the firm’s Form ADV Part 2A brochure, marketing materials, and other forms filed with the firm’s jurisdiction(s).
  • Clearly convey the individual IAR’s relationship to the RIA firm

Don’t:

  • Use abbreviations such as RIA or IAR. These terms should be spelled out in full as these initials have no meaning to the general public and these do not constitute a professional designation or degree.
  • Use misleading terms or unofficial titles or designations.
  • Use information that conflicts with current contact information.

This information, when paired with meeting any additional regulatory requirements of a particular jurisdiction, should set an IAR on his or her way to building and establishing new client relationships.