How to Start an RIA
A registered investment advisor (RIA) is a firm that provides investment advice and manages client portfolios for a fee, registered with either the SEC or a state securities regulator. Starting an RIA means building a business around fiduciary advice, organizing operational infrastructure, and meeting regulatory requirements before you take a single dollar of client assets. The path is demanding but repeatable, and many new firms launch each year by following a clear sequence of decisions around custody, compliance, technology, and go-to-market strategy.
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Clarify Your Business Model First
Before you file any paperwork, define how your RIA will make money. The two core models are fee-only, where you charge a percentage of assets under management or flat planning fees, and fee-based, which may include limited commissions on securities products. Most new firms choose fee-only to avoid conflicts of interest and to simplify compliance, but the choice shapes your regulatory obligations, marketing claims, and client expectations. You also need to decide whether you will launch as a sole proprietorship, LLC, or professional corporation, and what your target client niche will be, such as retirement planning, high-net-worth families, or small-business owners.
Build the Compliance Foundation
Compliance is the backbone of an RIA, and regulators expect it from day one. At minimum, you will need a written compliance policies and procedures manual, a code of ethics, a business continuity plan, a privacy policy, and a customer service protocol. You must also establish a supervisory framework, even if you are a single advisor, which typically means designating a chief compliance officer or engaging a compliance consultant. Your compliance manual should address portfolio management, trade execution, client onboarding, recordkeeping, and how you handle client complaints and outside business activities.
Choose Your Custody and Technology Stack
Unless you plan to keep client assets with a prime broker or execute trades without custody, you will need a qualified custodian. Custodians hold client assets, settle trades, and provide monthly or quarterly account statements. When selecting a custodian, compare fees, account types, trading platforms, reporting tools, and integration with your portfolio management and CRM software. Many advisors also build a technology stack around a portfolio rebalancing tool, financial planning software, a practice management platform, and secure document storage. The right stack reduces manual work and helps you deliver a consistent client experience as your book of business grows.
Handle Registration and Regulatory Filings
Registration depends on the size of your firm and where you plan to take clients. RIAs with at least $100 million in assets under management generally register with the SEC, while smaller firms register with one or more state securities regulators. The process involves filing Form ADV Part 1 and Part 2, passing the Series 65 or Series 66 exam, and undergoing background checks for yourself and any associated persons. If you plan to use a broker-dealer for certain transactions, you may need to be associated with that firm or operate under a specific exemption, so work with a securities attorney to map the right registration path before you launch.
Open Your Doors and Take on Clients
Once your compliance manual is in place, your custody relationship is set, and your registration is filed, you can begin onboarding clients. Best practice is to build a structured onboarding workflow that includes a client agreement, a suitability or fiduciary disclosure document, a risk tolerance questionnaire, and a clear service agreement that spells out fees, responsibilities, and communication expectations. From there, focus on delivering consistent advice and transparent reporting, because a new RIA lives or dies by the quality of its client relationships and its ability to grow through referrals and a disciplined marketing plan.