There are several factors that insurers consider when underwriting policies. However, we ll highlight a few of the monetary costs and other considerations right here. In addition, creating your own RIA firm may subject you to other costs such as audits by the SEC and state securities departments, an expensive and complicated array of record-keeping requirements, and a host of other considerations. Not surprisingly, entire companies are devoted to helping broker-dealers and RIAs comply with these rules. For an accounting firm that plans to form its own RIA firm, engaging a compliance firm is probably one of the most cost-effective ways to prevent the costly fines and considerable damage that may be caused by a regulatory lapse.
Registrations are typically renewable annually.
Consult your state securities department for a schedule of these renewal fees. Here are a few basic requirements. Aggregate key firm information for regulatory and perhaps public disclosure. Meet applicable minimum federal and state net capital and bonding requirements. File state registrations in any state where you maintain an office and for all states in which you have more than five clients.