When you start an RIA, it’s crucial to be aware of the state-specific requirements. In this article, we’ll look at the requirements specific to Indiana.
Who is required to register in the state of Indiana?
Advisors soliciting their services in the state, have more than five clients, manage less than $100 million in AUM, or live in Indiana must register their RIA with the state.
If managing over $100 million in AUM, consider registering with the SEC.
To make this process easier, consider hiring a compliance consultant. A compliance consultant can make navigating this process easier, but if not, this article will provide you with the necessary guidance..
Statement requirements for RIAs in Indiana:
Advisors in Indiana 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.
The state also requests advisors to submit the form U-4 and ADV part 2B.
Form and policy requirements for starting an RIA in Indiana:
Filing with Finra
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
Although FINRA does not oversee or regulate Registered Investment Advisors (RIAs), the state uses FINRA's system to process RIA applications. As a result, investment advisors must apply for access to FINRA's WebCRD/IARD online platform.
- Form ADV Part 1 (online portion)
Information about the RIA is found in this section of the ADV, and this is the online component of your firm’s registration documentation. Personal details are submitted in Form U4 and ADV Part 2B. 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 contains information regarding your RIA and is considered your firm’s brochure. This brochure includes your fees, services offered, disclosures of disciplinary actions, and other relevant details. This brochure must be provided to all clients and prospects and written in plain English that's simple to understand.
- Form ADV Part 2B (paper and online)
Form ADV 2B is another brochure that must be given to clients by Investment Advisor Representatives. It contains details about their educational background, work history, possible conflicts of interest, and any disciplinary actions taken against them. Executive Officers who offer investment advice and representatives who advise clients must also complete this form.
- Client Advisory Contract
The client advisory contract must abide by the standards set by the regulatory authority in Indiana. Additionally, it must encompass the investment policy statement.
- Code of Ethics
This filing ensures that your RIA is adhering to the standards set by the State of Indiana.
- Policies and Procedures Manual
This manual details the firm’s internal processes, such as handling customer grievances to training new Investment Advisor Representatives (IARs). It encompasses Business Continuity, Anti-Money Laundering, Information Security, and Anti-Insider Trading plans.
In conclusion, registering as an RIA in Indiana requires meeting financial statement requirements, obtaining specific professional designations, and submitting required forms and documents. Starting an RIA doesn’t have to be overwhelming with the right resources, such as our comprehensive RIA launch kit.
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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.