RIA Compliance FAQ's
- HOME
- FAQ'S
Everything You Need to Know About Starting, Managing, and Staying Compliant as a Registered Investment Adviser (RIA)
Whether you’re just launching or managing millions in client assets, our attorney-client privileged services ensure you stay compliant, audit-ready, and focused on growth. Below, we answer the most common questions RIA founders and compliance officers ask us every day.
General Registration Questions
A Registered Investment Adviser (RIA) is a firm or individual that provides investment advice for compensation. Registration is required with either the SEC or a state regulator, depending on total assets under management (AUM) and where clients are located.
Firms with $110 million or more in assets under management (AUM) must register with the SEC. Those with less than $100 million register at the state level. Firms managing between $100 and $110 million fall within a transition range that allows continued SEC registration. Some states — such as New York — have their own registration rules, so it’s best to confirm with legal counsel.
SEC registration typically takes 45 to 90 days, while state processing times vary by jurisdiction and completeness of filings. LawVisory supports an efficient process by preparing complete filings and managing communications with regulators.
You will need to file:
- Form ADV Parts 1, 2A, and 2B;
- Form CRS (for retail clients);
- Form U4 for each Investment Adviser Representative (IAR).
- A tailored Compliance Manual and core policies are also required under Rule 206(4)-7.
Compliance Program Essentials
A Compliance Manual explains how your firm stays compliant with investment-adviser regulations. It should outline your policies, procedures, and supervision practices, and be customized to fit your services and operations.
Each year, firms must review how well their compliance program is working and document any updates or fixes. This annual review helps identify risks early and keep your program current. LawVisory provides independent assessments and guidance throughout the process.
During an SEC exam, regulators review your firm’s records, client agreements, marketing materials, and operational practices. They may also interview team members. A mock audit helps you prepare, spot potential issues, and address them before a real exam.
Keep a compliance calendar to track key tasks, such as quarterly marketing reviews, annual policy updates, employee training, ADV or U4 filings, and vendor or cybersecurity checks. LawVisory offers monthly support to help firms stay organized and compliant.
Marketing & Advertising Compliance
The SEC’s marketing rules allow the use of testimonials and performance results, but only if the content includes clear disclosures and accurate presentation. It’s best practice to have all materials reviewed for compliance before publishing.
Yes, but every post counts as advertising under SEC rules. All content must be archived, include proper disclosures, and be monitored for compliance. LawVisory helps RIAs set up compliant social-media policies and archiving systems.
Regulatory Filings & Maintenance
The Annual Updating Amendment is due within 90 days of your fiscal year-end. You must update AUM, fees, services, disciplinary disclosures, and more.
Form U4 is used to register investment adviser representatives (IARs) with the SEC and/or state regulators. Any employee providing advice to clients must be properly registered and disclosed.
Form CRS (Customer Relationship Summary) is required for retail-facing RIAs. It outlines the services, fees, conflicts of interest, and disciplinary history of the firm in plain language.
Enforcement & Risk
Common risk areas include:
- Inaccurate ADV filings
- Undisclosed conflicts of interest
- Improper fee billing practices
- Performance marketing violations
- Poor email and data retention policies
Act quickly. You’ll need to draft a written response outlining remedial steps. LawVisory provides full regulatory exam support, including response letter drafting and implementation plans.
💬 Have More Questions?
Book a Free 30-Minute Discovery Call
We’ll review your needs and show you how LawVisory can simplify compliance while protecting your business.
📅 Schedule Now | 📧 info @ lawvisory.com | 🌐 www.lawvisory.com