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					           THE NEW
REGISTERED INVESTMENT ADVISER
       STEPS TO CONSIDER




         Professional Compliance Assistance, Inc.
     FORMING YOUR RIA FIRM
• CREATE YOUR CORPORATE ENTITY
  – FORM OF CORPORATION
    • LLC?
    • S-CORP?
    • PARTNERSHIP?
  – TAX ID NUMBER
  – OWNERS/CONTROL PERSONS
    • MORE DIFFICULT TO CHANGE ONCE YOUR CLIENTS
      SIGN WITH YOUR NEW FIRM

                Professional Compliance Assistance, Inc.
     FORMING YOUR RIA FIRM
• THE IARD
  – INVESTMENT ADVISER REGISTRATION
    DEPOSITORY
  – THIS IS HOW YOU ACTUALLY FILE YOUR
    APPLICATION
  – FINRA ADMINISTERS THE SITE BUT DOES NOT
    REGULATE ADVISERS
  – MAINTAIN YOUR OWN ACCESS
    • IN ADDITION TO YOUR LAWYER OR CONSULTANT

                Professional Compliance Assistance, Inc.
     FORMING YOUR RIA FIRM
• FORM ADV
  – PART 1A
    • THIS IS THE ACTUAL APPLICATION
  – PART II/SCHEDULE F
    • SCHEDULE F EXPLAINS THE ANSWERS TO PART II
  – THIS IS THE REQUIRED DISCLOSURE DOCUMENT
  – YOU ARE REQUIRED TO PROVIDE THIS TO ALL
    CLIENTS/PROSPECTS, SO USE IT AS A MARKETING
    PIECE!
  – CHANGES ARE COMING
                 Professional Compliance Assistance, Inc.
     FORMING YOUR RIA FIRM
• CLIENT AGREEMENT
  – OVER-ARCHING AGREEMENT
  – SPELLS OUT YOUR RESPONSIBILITIES
  – DISCLOSES ACTUAL FEES
    • MAY DIFFER FROM ADV
  – DISCRETIONARY VS. NON-DISCRETIONARY
  – IDENTIFIES ACCOUNT CUSTODIAN (on Exhibit)
  – INCLUDES ACKNOWLEDGEMENT OF CLIENT
    RECEIPT OF ADV AND PRIVACY NOTICE
                Professional Compliance Assistance, Inc.
    MANAGING YOUR RIA FIRM
• THE COMPLIANCE PROGRAM
  – IMPORTANT PART OF YOUR RIA
  – MUCH OF COMPLIANCE ‘HAPPENS’ AS YOU DO
    BUSINESS
  – THE TRICK IS TO DOCUMENT AND MANAGE
  – YOU ARE “THE COMPLIANCE DEPARTMENT”
  – DELEGATE AS APPROPRIATE, NOT JUST EXPEDIENT



               Professional Compliance Assistance, Inc.
    MANAGING YOUR RIA FIRM
• RULE 206(4)-7….THE COMPLIANCE RULE
  – THREE BASIC POINTS
    • NAME A CHIEF COMPLIANCE OFFICER
    • DESIGN A SET OF WRITTEN POLICIES AND PROCEDURES
      DESIGNED TO PREVENT AND DETECT VIOLATIONS OF
      APPLICABLE RULES
    • AT LEAST ANNUALLY, ASSESS THE EFFECTIVENESS OF
      THE IMPLEMENTATION OF THESE POLICIES AND
      PROCEDURES



                Professional Compliance Assistance, Inc.
    MANAGING YOUR RIA FIRM
• THE CHIEF COMPLIANCE OFFICER

  – SUFFICIENT KNOWLEDGE
  – SUFFICIENT TIME TO FOCUS ON COMPLIANCE
  – SUFFICIENT INFLUENCE IN THE FIRM TO COMPEL
    OTHERS TO FOLLOW ESTABLISHED POLICY
  – BE CAREFUL WITH YOUR SELECTION!



               Professional Compliance Assistance, Inc.
    MANAGING YOUR RIA FIRM
• THOSE WRITTEN PROCEDURES!
  – IMPORTANT NOT IMPOSSIBLE
  – DON’T OVER-COMPLICATE IT
  – ONLY ADOPT PROCEDURES THAT YOU ARE GOING
    TO ACTUALLY FOLLOW
    • USE CAUTION WITH ‘OUT OF THE BOX’ PROGRAMS
  – MATCH PROCEDURES TO REQUIREMENTS IN
    LIGHT OF YOUR PRACTICE
    • FOR EXAMPLE, IF YOU USE MANAGED MONEY, YOU
      NEED PROCEDURES THAT SOME OTHER FIRMS DON’T

                Professional Compliance Assistance, Inc.
    MANAGING YOUR RIA FIRM
• THE ANNUAL REVIEW



  – NOT FOR TODAY’S DISCUSSION!




               Professional Compliance Assistance, Inc.
                   SUMMARY

•   INCORPORATION:               ATTORNEY
•   IARD ENTITLEMENT             IN-HOUSE OR CONSULTANT
•   FILE APPLICATION             IN-HOUSE OR CONSULTANT
•   FORM ADV:                    IN-HOUSE OR CONSULTANT
•   WRITTEN PROCEDURES:          IN-HOUSE OR CONSULTANT
•   CLIENT AGREEMENT:            ATTORNEY
•   TRANSFER OF ASSETS:          IN-HOUSE AND HELP FROM
                                 CUSTODIAN
• MARKETING                      CONSULTANT AND/OR ATTORNEY

                   Professional Compliance Assistance, Inc.

				
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posted:7/26/2011
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