You’re interested in “breaking away” and starting your own wealth management firm. You know that this is going to bring some challenges. You need to determine what legal steps to take to set up the firm, for example. You’ll also have complete control over operations,...
Break Away From The Pack
RIA Formation
Common mistakes to avoid when forming an RIA
Forming a Registered Investment Advisor (RIA) can be a complex process that requires careful planning and attention to detail. Unfortunately, as with any business venture, there are common mistakes that can derail the success of an RIA. With many potential pitfalls in...
3 things to consider when leaving your current RIA firm
If you are a registered investment advisor (RIA), whether working as an individual or a firm, for a client(s), you have several duties to observe, which were included in your contract. Besides, the companies significantly benefit from working with you. Thus, it may...
How to move with your clients when starting your breakaway RIA
Loyal as you may be to your firm, you won’t remain there forever. Perhaps you’re craving to become your own boss or feel ready to start a new chapter in your career. Whatever your reasons, becoming a self-employed financial adviser is a wise decision. After working...
Items to address in a partnership agreement
If you and a new business partner are creating a partnership agreement while starting your own financial advisory firm, it’s a good idea to get everything in writing before you begin. This legal agreement can give you guidance, and it can provide structure as you move...
Reasons people start their own financial firms
After you graduated from college, you took a job at a financial firm because this was your area of study and you felt like it was the best way to learn the industry. But you’re not sure that you want to work for someone else for the rest of your life, and you’re...
The top challenges of starting a new RIA
Financial advisors start independent firms for many reasons. One of the most common is entrepreneurial independence. However, starting an RIA comes with several significant challenges. New, just formed RIAs with limited or no assets will present several unique...
Avoiding a poaching suit for your breakaway RIA
An increasing number of financial advisors are making the leap toward independence by leaving their firm or bank to hang their own shingle. When they do this, the success of their new venture often depends upon how many clients they are able to attract after they make...
Key points in RIA client agreements
As you set yourself up as a financial advisor on your own, your first step is to build out your client list. While doing this, it's important to use contractual client agreements. These are binding documents that help to define the relationship for both of you. The...
Avoiding conflicts of interest as an RIA
RIAs bear a fiduciary responsibility to act in loyalty, fairness, and good faith to their clients. Part of this responsibility includes freeing oneself from potential conflicts of interest and disclosing those that do exist. Such conflicts can arise from a number of...