United States Financial Advising Legal Blog

If you decide to set up your own firm, it might be the first time you've needed to deal with employees. While you might have managed others before, being the one that employs them is a different ball game. It comes with much more responsibility, and understanding and abiding by all relevant laws ...

Brokers who decide they're going to leave the firm they're currently with must ensure they're appropriately doing things so they don't violate any laws. They also have to review the terms of their contract to determine what terms are present there. One of the most important things you should do w...

Starting your own investment firm is a rewarding experience for most people. Some don't think about planning for what happens if there's an unhappy client with the firm. It can be a challenge to deal with these individuals, but there's a chance that you could secure them as clients even longer.  ...

Historically, litigation has been the most common way of resolving financial disputes, costing corporations hundreds of thousands of dollars in legal fees and overhead. However, it's not the only option you have to solve problems. Arbitration is used more frequently as a means of conflict resolut...

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 for several years in your curr...

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 forward. It can also help yo...

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 thinking about starting your own f...

There are always risks when you decide to form a newly registered investment advisor (RIA) entity. You may have a hard time bringing in clients, and you may work much longer hours than you do as a salaried employee at someone else's business.  However, if your efforts prove successful, breaking a...

The past two years have ushered in a whole new world of employee management. Whether your team is in the office, working from home or a hybrid, there are a number of ways to keep the team humming and happy. Judicious hiring Many performance and management issues can be averted before they start, ...

As an emerging financial services firm, you have to remember that your client's privacy is a priority. You don't want to be the firm that's responsible for a data breach that leads to your client's information being made public or being available on the dark web.  Most financial firms have state-...

Shareholders are individuals who own stocks in a company. The number of stocks per person generally varies, with the company having major shareholders and minority shareholders.  Nonetheless, it's important that all shareholders feel respected and are treated within the confines of the law. A sha...

Business partnerships start with the best of intentions. Unfortunately, that optimism can fade, and one partner may want to leave before the remaining partner(s) is/are ready to call it quits. It can lead to anger and frustration, not unlike a couple who divorces. Regardless of feelings, it may a...

Opening a financial firm requires clients to be successful. Even if you take clients with you from your former position, you must take steps to find new clients to continue to grow.  Finding effective ways to grow your client base can be challenging, but some tips can help.  Acquiring clients as ...

One of the most important responsibilities you have, when you're opening a new financial advising firm, is hiring ethical employees. These individuals should represent the values of the company that you're opening.  The people you hire will be responsible for taking care of other people's money, ...

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 challenges. Knowing what these are ...

Starting your own financial firm means that you have to determine how you're going to handle clients who are difficult. When you worked for another firm, you had the guidance of that firm, but you have to make these decisions on your own now. There are a few things to consider when you have a cli...

Partnership disputes are bound to happen at some point during your career. While it's sometimes possible to take steps to prevent these from occurring, you also be prepared to protect your firm if one happens.  It's important that you never allow a partnership dispute to affect the way that you'r...

The Securities and Exchange Commission (SEC) has been accused of violating defendants' rights in a recent ruling from a federal appeals court. The problem comes with the fact that an in-house judge was used in these cases. When the SEC performed court cases involving enforcement actions, an in-ho...

You're interested in starting your own financial advising firm, but you're not doing it alone. You have a friend who works in the same space, and the two of you have been talking about partnering up to open a firm together. This can be a great idea and could be very lucrative, but you need to tak...

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 the leap – and how quickly. ...

You put in a lot of years for a large finance firm. This sharpened your skills and gave you invaluable experience. You always dreamt of going it alone though, and you've broken away from your former company.  The beginning has been a success but you need to ensure this remains to be the case. Rep...

If you're starting your own registered investment adviser (RIA) firm, you may have a number of employees who have grown used to working at home and would prefer to continue to do that. Being able to accommodate remote employees can help you attract the best people. Further, having a portion of yo...

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 following are not all of the p...

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 circumstances, including: T...

If someone else has misappropriated trade secrets, it generally means that they have obtained or used them in an illegal manner. Perhaps they bribed someone to discover the secrets or they stole the information from a source they weren't supposed to have access to. Maybe they simply gave trade se...