Alabama Requirements for Starting an RIA
If you’re considering registering a new RIA in Mobile or are expand your core business to include fee-based securities in Birmingham our experienced team and broad Network of industry leading partners are here to help you achieve your goals while enabling you to continue focusing on what you do best. We are driven by simplicity, which is why we ensure we thoroughly understand your business before beginning our work. This really is the foundation for our “we-do-the-heavy-lifting-for-you” service style and best ensures the accuracy of our completely custom work.
Alabama RIA Registration
To register an RIA in Alabama in 2016 you will need to submit the documents listed below and pay an initial firm filing fee to Alabama of $250.
Required For Approval
These will be required whether you’re filing a new RIA for the first time or expanding into Alabama
- Form ADV Part 1
- Form ADV Part 2A
- Form ADV Part 2B (atleast 1 IAR)
- Form U4 (atleast 1 IAR)
- Wrap-Fee Brochure (if applicable)
- Client Agreement(s) & notices
- Corporate Documents/Filings/Financial
- GAAP Compliant Balance Sheet indicating Net Capital of $10,000.00+ or a $50,000.00 Surety Bond
- Oath of Affirmation Regarding the validity and currentness of the Net Capital Requirements
New RIA Also Required
You will also need to complete the following items if you are seeking approval as a State RIA for the first time:
- SAA Creation & FINRA Entitlement
- IARD/CRD Access & Authentication
- E-billing establishment & processing
Beyond RIA Registration
These documents and processes form a living set of procedures for much of your RIA, ensure adherence to regulations, and aren’t reviewed by your Alabama regulators during the application process. Your RIA will be expected to develop, maintain and adhere to protocols including:
- Policies & Procedures Manual
- Code of Ethics
- Cyber Security Policy
- Business Continuity Plan
- Compliance Procedures, Monitoring, & Execution
If you’re interested in learning more about what’s involved in successfully filing a new Alabama RIA or need to register an existing RIA in state in response to recent growth you can reach us by phone at 810-227-2549 or simply submit our contact us form. You can learn more about our turn-key New State RIA Registration services here or learn more about our additional State filing services here.
Alabama Annual RIA Renewals
In 2016, an Alabama RIA will pay $250 in state firm annual renewal fees via FINRA’s IARD system. Within 90 days of the new year each Alabama RIA will also have to file its annual amendments, indicating material changes and providing disclosure provenance, in addition to completing the renewal process for each of the firm’s IARs.
Whether you are looking for a cost-effective solution for your annual compliance requirements which can scale to meet your needs on-demand or you need to bring on a comprehensive compliance program and officer, we have the experience, know-how, and resources to protect your firm in an evolving climate.
Becoming an IAR licensed in Alabama will require you to meet the licensing requirements or waivers detailed below and payment of an initial registration fee of $60. Once licensed, an IAR will have to be registered with an approved RIA firm within 2 years to maintain their license – this involves updating the Advisor’s form U4 and creation of a Form ADV part 2B brochure supplement. Registration with an approved Alabama investment advisor firm is also required before the IAR can conduct investment advisory business.
In order to be licensed as an IAR in Alabama an individual must meet and/or maintain one or more of the following criteria:
Series 65 License
Series 7 & 63 Licenses
If you are interested in becoming a Series 65 Licensed IAR in Alabama or are looking for a turn-key solution to process your inbound IAR’s U4s and creation of ADV Part 2B Brochure Supplements contact us today by calling 810-227-2549 or submit our contact us form.
Each year an IAR must have successfully completed the requirements of their firm’s compliance program, certify and acknowledge the firm’s policies & procedures, and ensure the ongoing accuracy of their Form U4 and ADV Part 2B Brochure Supplement. They must also pay their annual renewal fees for Alabama which are $60 in 2016.