Skip navigation

Going RIA and curious if anyone has had issues with their current B/D blemishing their U5?

or Register to post new content in the forum



  • Allowed HTML tags: <em> <strong> <blockquote> <br> <p>

Plain text

  • No HTML tags allowed.
  • Web page addresses and e-mail addresses turn into links automatically.
  • Lines and paragraphs break automatically.
Dec 28, 2017 6:25 pm

As I'm doing my due dilligence prior to jumping into establishing my own RIA, it was brought to my attention by a firm who does RIA start-ups, that I need to consider all factors that may antagonize my independent B/D to put a black mark on my U5. The primary issue is that I already have an LLC established, but the RIA start-up co, suggests that my B/D, even though my LLC has been disclosed as as an OBA, that they may get pissed that I'm leaving with my clients to start my own RIA and put a black mark on my U5 because my B/D didn't okay my LLC with the understanding of it becoming an RIA. Has anyone ever heard of this or have had to deal with such a situation when leaving their current B/D to start their own RIA? For clarification, my agreement with my B/D is that my clients are my clients and not those of the B/D so if I left with my clients there is no non-compete issues.

Any insight or constructive feedback is much appreciated. Thank you!

Jan 19, 2018 5:12 pm

If your B/D has approved the LLC as an outside business activity, then assuming your B/D won't retailiate, you should be fine. Have you already resigned?