Starting an RIA is exciting, but knowing each state's different rules and regulations is important. This article will focus on the specific requests of the state of Nebraska.
Who is required to register in Nebraska?
Advisors who live in the state with 5+ clients in Nebraska, less than $100M AUM, or market in Nebraska must register as an RIA.
Advisors managing over $100 million in AUM, might consider registering with the SEC.
Hiring a compliance consultant can help you, but if not, this article will provide the necessary information.
Advisors in Nebraska must have either a Series 65, Series 66 and Series 7, CFP, CFA, CIC, ChFC, or PFS.
Also, every advisor must submit ADV part 2B and the form U-4.
Policy and Form requirements:
To apply in Virginia, advisors must apply for access to FINRA's WebCRD/IARD online system. Virginia uses FINRA to process applications, but FINRA doesn’t supervise RIA firms.
- Apply for an account to FINRA's WebCRD/IARD
RIAs are not regulated or supervised by FINRA, but the state uses FINRA's system to process applications. As a result, advisors must apply for an account through FINRA's WebCRD/IARD online system. - Form ADV Part 1 (online only)
Form ADV Part 2A provides information about the RIA only. Personal information is included in Form U4 and ADV Part 2B. This form is the online aspect of the registration. It’s also used to upload Form ADV Part 2A and Form ADV Part 2B.
- Form ADV Part 2A (paper and online)
This brochure provides information about the RIA, such as fees, services, disciplinary actions, and other details. It should be given to all potential and current clients. The state of Nebraska requires it to be written in clear and easily understandable language. - Form ADV Part 2B (paper and online)
Form ADV 2B is a brochure that Investment Adviser Representatives (IARs) must give clients. It includes information on employment history, education, potential conflicts of interest, and disciplinary actions. This form is typically required for Executive Officers, those who give investment advice to clients, and representatives who advise clients.
- Code of Ethics
Advisors must submit this to show Virginia they meet the state's standards. - Privacy policy statement
All clients must be given the firm's Privacy Policy Statement at the start of their relationship with the firm and every year after that. It should explain how the firm stores, handles, and shares client information. The Privacy Policy Statement is tailored to the firm's needs and must meet compliance requirements set by Tennessee. - Client Advisor Contract
The client advisory contract must comply with the regulatory standards for client advisory contracts established by the state of Nebraska. It must also have an investment policy statement. - Policies and Procedures Manual
The manual is the main source for ensuring firm policies are followed, including handling client grievances and instructing new Investment Adviser Representatives. It also includes crucial plans like the Business Continuity Plan, Anti-Insider Trading Policy, Anti-Money Laundering Policy, and Information Security Policy.
To register as an RIA in Nebraska, one must meet financial statement requirements, attain specific professional designations, and submit the required forms and documents. Starting an RIA can be overwhelming, but resources are available to help. Our team has developed a comprehensive RIA launch kit to assist in getting started.
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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.
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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.
