Warner talked about the RIA space during the Invest in Women conference sponsored by Financial Advisor on June 22 . During her presentation in Atlanta , called “ A Time for Change : Starting , Joining , or Leaving an RIA ,” Warner outlined the options available and steps that need to be taken to accomplish a successful transition .

Assets managed by RIAs have tripled over the last decade , and the channel continues to grow at about 12 % per year , which makes it one of the fastest-growing channels in the financial services industry . The options available to aspiring RIAs are to go with a broker-dealer as an RIA , to be a stand-alone RIA or to split the financial planning and asset management functions under an RIA , Warner said . The last is the least common choice .

Advisors contemplating a change need to hire an attorney and hire a consultant . “ I can ’ t stress the second one enough ,” Warner said . Then they must appoint a chief compliance officer , whether it is themselves or someone else , and register with the appropriate state organization or with the SEC , depending on the size of the firm they are creating . Those with less than $ 100 million in assets under management can register on the state level , while those with more than $ 100 million must register with the SEC .

A number of documents must be created to form an RIA , including a privacy policy , a code of ethics and a policies-and-procedure manual . “ Violations of the written policies and procedures of a firm are the most common failures of a firm that we see ,” Warner said .

Advisors should also create a business continuity plan ( which is required by the SEC to protect clients ), a cybersecurity plan ( also required by the SEC ) and a compliance manual .

“ A consultant can help you with all of these ,” Warner said .

Other things are optional but are important to the success of a new firm , she said ,

including the selection of the right custodian and the selection of risk analysis software .

The brand name you choose , the website design and even the color of the logos and website are important , Warner said .

“ I encourage you to utilize social media , and , once you start , this is not something you want to quit ,” she said . Likewise , a new firm should develop a user-friendly client portal , because clients today want their information available without making a phone call .

A well-thought-out strategy should be de- veloped for a firm to present the value proposition of the advisors to potential clients .

The key to the success of any transition is to think of all the possible outcomes and potential problems ahead of time . Whether the acquiring firm and the one to be acquired have the same culture is an aspect to explore in advance , Warner said . Also , do the technologies of the two firms mesh ?

“ Violations of the written policies and procedures of a firm are the most common failures of a firm that we see .”

— Lizzie Warner

The compensation and benefits for the owners and staff of the acquired firm need to be set out in writing , she added .

“ Do you own your own clients , or do they become clients of the firm ?” is also a crucial question , she said .

Joining , leaving or starting an RIA is a complicated process that requires detailed planning in advance , Warner cautioned .

Cambridge is a broker-dealer and consulting firm based in Fairfield , Iowa .

— Karen DeMasters

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