To start an RIA in Alaska, you must familiarize yourself with specific guidelines. Learn what those are in this article.
Alaska requires advisors who meet the following criteria to register with their RIA:
- If your RIA is located in Alaska
- You’re managing less than $100 million in AUM
- You’re soliciting your financial services in the state
- You’re managing more than five state residents
Consider hiring a compliance consultant if you need help setting your RIA correctly.
The state of Alaska requires advisors to have one of the following professional designations: Series 65, Series 7 & 66, CFP, CFA, CIC, ChFC, or PFS.
IARs must pay all registration and filing fees and must complete the following tasks:
-
Submit FINRA Entitlement Paperwork
Alaska uses FINRA’s WebCRD/IARD system to process RIA applications, so you must apply for an account to the system to complete your application process. FINRA doesn’t regulate or supervise RIAs. -
Form ADV Part 1 (online only)
In Form ADV Part 1, you will provide information about the RIA: ownership, clients, business practices, disciplinary events, and affiliations. You must also provide details about your or your employees’ involvement in disciplinary events. Advisors also utilize it to upload ADV Part 2A and ADV Part 2B. -
Form ADV Part 2A (paper and online)
Form ADV Part 2A, also known as your Firm’s Disclosure Brochure, contains information about your firm. In this brochure, you will share the firm’s fees, services, and disciplinary disclosures. This brochure is given to prospects and clients and must be written in plain English that’s easy to read. -
Form ADV Part 2B (paper and online)
Form ADV Part 2B is also a brochure that is given to prospective and current clients. In this brochure, you will disclose your educational background, employment history, potential conflicts of interest, and any disciplinary actions. If there are any Executive Officers or representatives who advise clients, they must also complete this form.
This brochure must also be written in plain language that is easy to read and understand.
If sponsoring a wrap fee program, Appendix 1 is also required. -
Form U4
Advisors will use Form U4 to register Investment Advisor Representatives (IARs). -
Client Advisory Contract
Alaska has set regulatory standards for client advisory. Filing this lets the state know that your RIA is compliant with these regulatory standards.
-
Bonding and Financial requirements
A surety bond of $10,000 is required if your RIA is seeking discretionary authority. If your firm will have custody of client funds or securities, the surety bond requirement is $35,000. Firms can submit State of Alaska Form 08-100 or other form acceptable to the administrator for this requirement. The state has additional minimum financial requirements post-registration that firms should be mindful of (Alaska Admin Code [AAC] 08.027).
If you’re seeking approval as a state RIA for the first time, you will need to complete the following:
- IARD/CRD Access & Authentication
- SAA Creation & FINRA Entitlement
- E-billing establishment & processing
Additional documents that Alaska may require:
-
Privacy Policy Statement
At the start of the client relationship and every year following, you must provide them with the Privacy Policy Statement. The policy will explain how how your firm manages, protects, and shares client data. The Privacy Policy Statement will be specific to your firm but it must follow the rules provided by the State of Alaska. -
Policies and Procedures Manual
The Policies and Procedures Manual acts as your firm’s internal guide, containing information from dealing with customer complaints to training new employees. It should also contain information about important policies such as Business Continuity Plans, Anti-Money Laundering, Information Security, and Anti-Insider Trading Plans. -
Code of Ethics
The state of Alaska has specific fiduciary standards in place, and this confirms your firm is meeting those.
Starting an RIA doesn’t have to be overwhelming with the right resources, such as our comprehensive RIA launch kit.
At Altruist, we strive to make independent financial advice better, more accessible, and more affordable. Our platform gives back precious time and capital to RIAs, so you can focus on what matters most: your clients and business.
On one intuitive, integrated platform, advisors can open and fund accounts, trade and rebalance, report, and bill, at a fraction of today’s edging-ever-higher technology costs.
Our dedicated customer support team is here to help advisors that are planning to make the leap from their wirehouse. Our team will help ensure a smooth transition with exceptional ongoing service. Book a call with one of our transitional specialists now.
*Altruist and its affiliates do not provide legal advice, so it’s important to check with a qualified professional for each state’s registration requirements.
