If you plan to open an RIA in Kansas, you must familiarize yourself with the state requirements. This article will walk you through each of the requirements.
Who is required to register in the state of Kansas?
If the advisor lives in Kansas or serves Kansas residences, they must register their RIA with the state.
To make this easier for yourself, consider hiring a compliance consultant to help you with your registrations.
Financial statement requirements for the state of Kansas:
Advisors 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 Kansas:
In addition to paying all the state’s registration filing fees, IARs must complete the following:
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Submit FINRA Entitlement Paperwork
The first step will be to apply for access to FINRA’s Web/CRD/IARD online system. While FINRA doesn’t regulate or supervise RIAs, the state of Kansas uses its system to process applications. -
Form ADV Part 1 (online portion)
This is the ADV's online component and will contain only information about the RIA. It is also used to upload ADV Part 2A and ADV Part 2B.
There are two parts to Part 1: Part 1A is for all RIAs that are SEC-registered and state registered. Part 1B is for state-registered advisors. -
Form ADV Part 2A (paper and online)
This serves as the RIA’s disclosure brochure, and there will be information about the RIA’s fees, services, disciplinary disclosures, and other information about the firm.
The state requires that this be given to all prospective and existing clients; it must also be written in easy-to-understand plain English. -
Form ADV Part 2B (paper and online)
This is a paper brochure that's often given to clients. Advisors will share information about themselves from their employment history, educational background, potential conflicts of interest, and any disciplinary actions.
Additionally, any Executive Officers or representatives who advise clients must complete this form. -
Client Advisory Contract
This filing ensures that the RIA meets the regulatory authority standards for client advisory contracts set forth by Kansas.
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Code of Ethics
This confirms that the RIA upholds the fiduciary standards required by Kansas. -
Privacy Policy Statement
The Privacy Policy Statement is a required document given to all clients at the start of the relationship and annually after that. The RIA explains how it handles, stores, and shares client information in this document.
Every RIA’s statement will be unique to their firm, but it must meet and comply with the compliance requirements established by the state of Kansas. -
Policies and Procedures Manual
The Policies and Procedures Manual is used to maintain and enforce the internal policies of the RIA. It should have detailed instructions on everything from how the RIA handles client complaints to how it trains new IARs. It must also contain information on Anti-Insider Trading plans, Business Continuity, Anti-Money Laundering, Information Security Policy, and Proxy Voting Policy.
While customized to your firm, it must still meet the State of Kansas’s compliance requirements.
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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.
