Alabama Requirements for Starting an RIA

Alabama RIA Registration and Compliance

If you’re looking to register a new Registered Investment Advisor (RIA) in Birmingham or expanding your advisory practice across the Southeast, our experienced team and network of industry-leading partners can help you navigate Alabama’s registration requirements while you focus on serving your clients.

Our approach begins with understanding your business model and long-term goals. From there, we take on the heavy lifting—handling filings, coordinating with regulators, and ensuring compliance—so your registration process is efficient and aligned with your firm’s vision.

Alabama RIA Registration

To register an RIA in Alabama in 2024, you must file required documentation through the Investment Adviser Registration Depository (IARD) and submit the applicable fees to the Alabama Securities Commission (ASC). Fees are subject to change, so it’s important to confirm the latest requirements with the ASC.

Required Documents for Approval

Whether filing a new firm or expanding into Alabama, you’ll need to prepare and file:

• Form ADV Part 1
• Form ADV Part 2A (Firm Brochure)
• Form ADV Part 2B (Brochure Supplement for at least one IAR)
• Form U4 (for each Investment Adviser Representative)
• Wrap-Fee Brochure (if applicable)
• Client Agreements and Disclosures
• Corporate Formation Documents & Financials
• Surety Bond: Alabama requires a $50,000 surety bond if you will have custody of client funds or securities.

Additional Requirements for New RIAs

First-time state registrants must also complete:

• Set up IARD/CRD access and authentication
• Create and submit a Super Account Administrator (SAA) entitlement
• Establish E-billing for regulatory fees

Compliance and Beyond

While certain compliance documents are not filed with the ASC at registration, your firm must create, implement, and maintain them for regulatory reviews and ongoing operations, including:

• Written Policies & Procedures Manual
• Code of Ethics
• Cybersecurity Policy
• Privacy Policy
• Business Continuity & Disaster Recovery Plan
• Ongoing Compliance Testing and Monitoring Program

Alabama Annual RIA Renewals

Each year, Alabama RIAs must:

• Pay renewal fees for the firm and all Alabama-registered IARs via FINRA’s IARD system.
• File annual Form ADV amendments within 90 days of fiscal year-end, disclosing any material changes.

Confirm deadlines and renewal fee structures with the ASC to ensure compliance.

Alabama IAR Registration

To act as an Investment Adviser Representative (IAR) in Alabama, individuals must file through IARD/CRD, pay the registration fee, and meet qualification standards.

Licensing Requirements

Alabama requires an individual to hold one of the following:

• Series 65 license, or
• Series 7 + Series 66 licenses, or
• Approved professional designations, such as CFP®, CFA®, CIC, ChFC®, or PFS.

Each IAR must also file Form U4 and be linked to an approved RIA firm before engaging in advisory business.

IAR Renewals

Alabama IARs must annually:

• Pay renewal fees via IARD.
• Update Form U4 to reflect any material changes.
• Certify completion of the firm’s compliance requirements and acknowledge adherence to the firm’s policies and procedures.

Get Started with Alabama RIA Registration

Whether you are launching a new advisory firm in Alabama or expanding your existing practice into the state, we can streamline the process from registration to compliance program development. Call us at (810) 227-2549 or use our contact form to learn more about our turnkey Alabama RIA registration and compliance services.

You can verify the current renewal fees for 2024 here: https://www.nasaa.org/industry-resources/investment-advisers/state-investment-adviser-registration-information/alabama/

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