RIA or IAR
RIA or IAR?
When choosing between becoming an IAR and joining an RIA firm or starting your own RIA firm it is important to fully consider the ramifications of your decision. As an IAR you are able to focus on client relationship management and asset gathering, you do not have to focus on general business operations as an RIA owner. However, as an IAR you are compensated for your work. As a business owner, the difference between expenses and income is yours to keep. We developed our solutions to maximize cost efficiency and profitability. This way whether you are joining or starting an RIA your clients save on fees, and less of the fees go to operating expenses.
Responsibility</strong | RIA | IAR |
Pass Series 65 | ✔ | ✔ |
Complete Regulatory Applications | ✔ | ✔ |
Obtain E&O Coverage | ✔ | ✔ |
Annual Fees to State/SEC | ✔ | ✔ |
Maintain Client Files, Forms, & Docs | ✔ | ✔ |
Build & Maintain Client Relationships | ✔ | ✔ |
Make Client Investment Recommendations | ✔ | ✔ |
Establish Business Entity | ✔ | |
Define Anti-Money Laundering Policy | ✔ | |
Develop Disclosure Documents | ✔ | |
Register Entity as RIA with State or SEC | ✔ | |
Establish Written Policies & Procedures | ✔ | |
Prepare Investment Policy Statement | ✔ | |
Prepare Financial PLanning Agreement | ✔ | |
Prepare Code of Ethics, Privacy Notices, and Other Misc. Policies | ✔ | |
Prepare Disaster Recovery Plan & Continuity Plan | ✔ | |
File Annual Reports | ✔ | |
Maintain Minimum Working capital | ✔ | |
Anticipate & Be Ready for Surprise Audits | ✔ | |
Determine and Maintain Regulatory/Compliance Filings | ✔ | |
Select Investment Custodian | ✔ | |
Maintain and Update Risk Tolerance Questionaire | ✔ | |
Maintain Risk Controls | ✔ | |
Prepare Regular Performance Reporting | ✔ | |
Calculate & Deduct Advisory Fees | ✔ | |
Recruit, Hire, Develop, and Retain Investment Advisory Personnel | ✔ | |
Stay Abreast of Ongoing Regulations | ✔ |