Newly Registered RIAs - Things to Consider
If you are a newly registered RIA or considering the independent route and getting ready to start your own RIA, there are many things that need to be considered. TD Ameritrade has a lot of information for both sides of the fence (1) Those already registered and ready to start growing their business (2) Those considering the independent route. (www.tdainstitutional.com/making-the-move.page?cid=PSINST&ef_id=VbeGAAAAAe3UB0Ks:20150803132240:s)
A couple of things I see as most important are the following:
- Work with a knowledgeable/reliable compliance consultant that can be your "outsourced CCO" - Delegation of tasks is key to ensure you focus your time on what you do best!
- Consider all of your expenses/overhead:
Especially your insurance costs
In some states it is mandatory that the RIA carries a License & Permit (Surety) Bond. If the bond is not purchased then you are liable to be fined or even have your registration process delayed
E&O Insurance, although not mandatory, is highly recommended to safeguard the firm's assets which you will be working day and night to grow. The right E&O coverage can/will cover both litigation expenses and any settlement/judgment made against the firm as a result of professional services.
Any questions please respond to this post or reach out to me per the below:
First Professional Brokerage