Starting an RIA varies from state to state, so knowing the specifics are crucial. Here are the requirements for Idaho.
Who is required to register in the state of Idaho?
Advisors serving more than five clients in the state, soliciting their services in Idaho, or they live in Idaho.
Before we proceed, consider hiring a compliance consultant to help make this process easier for you.
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Financial statement requirements: Only required if the firm is based in Idaho and state regulated.
Advisors in Idaho must have one of the following professional designations to operate in the state:
Series 65, Series 66 and Series 7, CFP, CFA, CIC, ChFC, or PFS.
Form and policy requirements for starting an RIA in Idaho:
In addition to paying all the state’s registration filing fees, advisors must complete the following:
- Apply for an account to FINRA’s WebCRD/IARD
Investment advisors must apply for access to FINRA’s WebCRD/IARD online platform. FINRA doesn’t oversee or regulate RIAs, but the state of Idaho uses FINRA’s system to process RIA applications. - Form ADV Part 1 (online portion)
Form ADV Part 1 will have information about the RIA and is the online component of the firm’s registration documentation. Form ADV Part 1 also serves the purpose of uploading ADV Part 2A and ADV Part 2B. - Form ADV Part 2A (paper and online)
Form ADV Part 2A has information regarding your RIA and is considered the firm’s brochure. This brochure describes your firm’s fees, services offered, disclosures of disciplinary actions, and other relevant details. This must be provided to all clients and prospects and written in plain, simple English. - Form ADV Part 2B (paper and online)
Form ADV Part 2B requires advisors to disclose their educational background, work history, potential conflicts of interest, and any disciplinary actions. Executive Officers who offer investment advice and representatives who advise clients must also complete this form. Also, this is another brochure that must be given to clients by Investment Advisor Representatives (IARs). - Code of Ethics
This filing ensures that your RIA is adhering to the standards set by the State of Idaho. - Client Advisor Contract
The client advisory contract must follow the standards established by the Idaho regulatory authority. - Privacy policy statement
The Privacy Policy Statement is given to clients at the start of their relationship and annually. This document will explain how the firm handles, stores, and shares client information. It’s customized to the firm's specific needs but must comply with regulations established by Idaho. - Policies and Procedures Manual
The Policies and Procedures manual details the firm's internal processes. These processes include handling customer grievances and training new Investment Advisor Representatives (IARs). It encompasses Anti-Insider Trading plans, Business Continuity, Anti-Money Laundering, and Information Security.
Additional state-specific requirements may also apply, refer to the Investment Adviser Application Procedures and Information checklist on the state’s website.
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*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.
