RIA Compliance Rules

RIA compliance rules and regulations can be confusing. A comprehensive RIA compliance strategy starts with a review of your existing documents. A review also includes advertising, marketing, policies and procedures as well.  Then compare and contrast the results to your existing business model and regulatory requirements. You will then want to review what you have found, confirm the necessary changes do in fact need updating and then update, rewrite and file an updated version of all forms and brochures.

Financial firms have an obligation to adhere to regulatory compliance obligations. They need to expend resources to ensure they maintain all necessary files, documents and controls are in place to mitigate market, credit, operational and other forms of risk. It is very easy to fall behind in your compliance responsibilitis & obligations. Most successful RIA’s choose to outsource compliance to reduce the time and effort that is taken away from their practice. A compliance consultant can assist you by initially conducting a risk review, prepare a risk assessment matrix, and developing a customized written policies and procedures manual to address any risk.

Reviewing advertising and marketing material (including websites and social media) to determine if you’re in compliance with applicable regulatory requirements is extremely important.  A good compliance firm can assist and help you create and revise the content on your website, provide you with disclosures and develop a customized policies and procedures manual for maintaining your website and all other forms of advertising.

Common audit findings are as simple as not updating and maintaining forms U4 and U5.  Choose a compliance firm that has the knowledge and experience to assist with all filings, regulatory obligations, registration and ADV updates. Most compliance outsourcing firms assist with the basics (filing forms) and nothing else.  A good compliance firm will help you identify and facilitate all of your firm’s filings, assist with decisions such as solicitors, hiring and employee risk reviews.

Written by: Edward Romanowsky, President and CEO of Aurora Compliance Solutions