Important Resources Every RIA Should Consider

Managing an independent RIA firm can be challenging on many levels. If you’re making the transition to your own practice or are looking for ways to streamline operations and increase efficiency for an existing firm, having the right tools and support can help. RIA resources generally fall into three categories: educational guides, tech tools/software and third-party service providers. Knowing what’s available can help you develop and implement an effective growth plan.

SmartAsset’s Advisor Marketing Platform (AMP) offers financial advisors services like client lead generation, automated marketing and more. Learn about SmartAsset AMP today.

RIA Resources for New and Transitioning Advisors

There’s quite a bit that goes into starting a financial advisor business. You’ll need to meet SEC registration requirements, obtain necessary licenses, choose an RIA custodian and build out your tech stack. You might find these resources helpful as you map out the initial phase of starting an advisory business.

SEC registration: RIA firms must register with the SEC or the appropriate state securities regulator, depending on their size and other factors. This process generally involves filing Form ADV and meeting applicable regulatory requirements. Individual advisors may also need to satisfy securities examination and registration requirements.
State registration resources: RIA firms with less than $100 million in regulatory assets under management generally register with state securities regulators rather than the SEC, although exceptions apply. The North American Securities Administrators Association (NASAA) maintains a map with links to each state’s securities regulator.
Series 65 exam resources: Financial advisors typically need to meet certain qualification requirements to register as investment advisor representatives. Passing the Series 65 exam is one common way to satisfy these requirements, although alternatives and exemptions may apply. FINRA offers information about registering for the exam and what to expect on test day.
RIA custodians: When launching a new RIA, you’ll need to choose a custodian to hold client assets. Learn how to choose an RIA custodian and what functions they’re meant to perform in your business. Some of the largest RIA custodians include Schwab, Fidelity and LPL Financial.
RIA insurance: RIAs are not required by the SEC to purchase errors and omissions insurance, though it’s strongly recommended that they do so. This type of insurance can protect your new business against liability claims relating to misrepresentation, negligence, or malpractice.
RIA compliance: One of your most important duties as an RIA is ensuring compliance with all regulatory requirements. This guide breaks down RIA compliance requirements and essential strategies for meeting them.

Client Acquisition Simplified: For RIAs

Ideal for RIAs looking to scale.
Validated referrals to help build your pipeline efficiently.
Save time + optimize your close rate with high-touch, pre-built campaigns.

CFP®, CEO

Joe Anderson

Pure Financial Advisors

We have seen a remarkable return on investment and comparatively low client acquisition costs even as we’ve multiplied our spend over the years.

Pure Financial Advisors reports $1B in new AUM from SmartAsset investor referrals.

RIA Tech Tools and Software

An advisor researching tech tools and other RIA resources for their RIA firm.

Utilizing tech tools can save time and money as you launch or grow your RIA business. Here are some of the resources you may consider adding to your tech stack.

Customer relationship management (CRM) software: Customer relationship management (CRM) software can help streamline client onboarding, organize client information and automate routine administrative tasks. Popular CRM platforms among financial advisors include Redtail and Wealthbox.
Visualizer tools: Portfolio visualizer tools allow you to create visualizations for clients to help them better understand potential outcomes when making investment decisions. You may utilize an independent visualizer tool like Nitrogen, or have access to one in your financial planning or investment management software program.
Financial planning software: Financial planning software is designed to help you create comprehensive, holistic plans for managing client assets. You may use financial planning software alongside investment/portfolio management software and estate planning software to formulate financial plans. Commonly used options include eMoney Advisor, MoneyGuidePro and RightCapital.
Compliance software: As mentioned, compliance is central to how you operate your firm. Digital compliance solutions can help keep your firm on track and up to date with the latest regulatory guidelines. Comply (formerly RIA in a Box) and Smartria are two compliance options RIAs rely on.

Build a Better RIA

Drive growth with automation, not headcount using the all-in-one advisor marketing platform.

Resources to Scale Your RIA

Networking and marketing can help your firm expand and attract new clients. Some of the tools and strategies you might use to fuel growth include:

RIA conferences: Attending RIA conferences can be an excellent opportunity to grow your professional network and learn from experienced advisors who have built successful practices. This list details some of the most notable RIA conferences to know.
Networking resources: Joining professional associations is another way to expand your professional network. Some of the organizations you may consider joining include the National Association of Professional Financial Advisors (NAPFA), the National Association of Insurance and Financial Advisors (NAIFA), and the Investment Advise
r Association (IAA).
Marketing resources: Marketing may account for a significant part of your daily activities when your RIA firm is in growth mode. Some of the most helpful marketing resources can include digital ads, social media and direct mail campaigns.
Lead generation tools: Asking for referrals is one way to drive leads to your business, but it may take time to build a loyal client base. Using an automated marketing tool like SmartAsset AMP can help you grow your business at a faster pace. With SmartAsset AMP, you get the benefit of automated marketing and compliant nurturing campaigns, leaving you free to focus on serving your clients.

Frequently Asked Questions (FAQs)

What Is Needed to Start an RIA?

You’ll need to have the required securities licenses and register with the SEC or the appropriate state agency to start an RIA. You’ll also need to obtain any business licensing your state requires, as well as taxpayer identification numbers. Starting an RIA also requires capital to cover initial costs and ongoing expenses as you work toward profitability.

How Much Does It Cost to Start an RIA Business?

RIA startup costs can vary based on your registration status, whether you need to obtain additional licenses and how you plan to operate. A typical cost is around $25,000, but it may take a larger amount of capital to get your operation up and running if you plan to hire multiple employees, invest a significant amount in advertising or lease premium space for operations.

How Hard Is It to Start an RIA?

Starting an RIA requires a certain degree of planning and patience as there are numerous requirements to meet for registration. You’ll also need to consider how your business will operate and whether it’ll just be you initially or if you plan to hire employees. Talking to other RIAs who have gone independent can give you a better idea of what to expect.

How Do I Grow My RIA Business?

There are many ways to grow an RIA business. Marketing is critical but you may also rely on referrals from existing clients to attract new ones. Using an online marketing platform for financial advisors can be a cost- and time-efficient way to generate leads that grow your business.

Bottom Line

An advisor using RIA resources during the onboarding process for new clients.

Having a go-to list of RIA resources can be a huge help when you’re trying to start a new firm or grow one that you’ve already launched. The ones mentioned here are just some of the tools, guides and tips you might find useful as you position your firm for success.

Tips for Growing Your Advisory Business

Getting a new RIA firm off the ground requires a savvy marketing strategy that speaks to the unique pain points and needs of your target audience. If you’re struggling to craft the perfect campaign, you might consider the benefits of working with an automated marketing platform. SmartAsset AMP equips you with the tools you need to attract qualified leads and nurture campaigns automatically, without any guesswork or surprises.
A business bank account is another resource you’ll need when starting an RIA firm. When choosing a business bank account, consider the range of features and benefits you’d like to have access to, as well as the fees you’re willing to pay. Convenience may also be a factor in your decision if you prefer branch banking to online banking, or vice versa.