New RIA....need an OSJ?

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Mar 1, 2009 1:50 pm

In starting my own RIA would I need to have an OSJ?



I've had different answers. ...Some say yes, other say I won't need an OSJ but will need to hire an independent auditor once a year.



Is it possible to have my own RIA firm through Fidelity/Schwab and not have an OSJ?



Thanks

Mar 1, 2009 4:43 pm
iceco1d:

Sounds like you need to do a bit of research as to what an RIA actually is.



Agreed.



The answer is 'no' you do not need to have an OSJ. Why? It's only used with an independent BD, and not an RIA.



jjones:


Is it possible to have my own RIA firm through Fidelity/Schwab and not have an OSJ?



Thanks





Since you don't need an OSJ, your second question is moot. You don't need one.



Lastly, you do NOT need to have an independent auditor inspect your RIA practice each year. If you are a single person practice, you would be the compliance officer, and be the one responsible for your actions. I suggest the use of a compliance consultant to ensure that you are doing the right thing. The SEC will be the ultimate judge concerning your compliance activities.



C

Mar 6, 2009 4:00 pm

If you are acting on behalf of yur client in executing the recomendations you make you will need to be affiliaterd with a BD. You become your RIA's IAR. The BD will be an OSJ for purposes of compliance with securities you sell on behalf of your clients.

 
You do not need an auditor if you do not have discretion over client assets. However, you will still be required to maintain a seperate set of RIA level financial records (BS, etc).
Mar 7, 2009 8:15 pm

Anyone looking for an answer to the op's question should refer to Captain's answer, and completely ignore minimumvariance's post, which is filled with errors.