Before starting an RIA in Nevada, advisors must familiarize themselves with the requirements and guidelines set by the state. This brief article will explain the requirements for registration.
If an advisor meets the following criteria, they must register their RIA with the state of Nevada:
- The RIA is located in the state
- The advisor manages less than $100 million in AUM
- They solicit their financial services in Nevada
- They manage assets for more than five Nevada state residents.
Advisors may consider hiring a compliance consultant to help set up your RIA in Nevada.
Nevada requires that advisors have one of the following professional designations: Series 65, Series 7 & 66, CFP, CFA, CIC, ChFC, or PFS.
In addition to paying registration fees, IARs must complete the following tasks and submissions with the state:
-
Submit FINRA Entitlement Paperwork
FINRA doesn’t supervise or regulate RIAs; however, Nevada uses its system to process applications. Therefore, advisors must apply for an account to FINRA’s WebCRD/IARD online system to submit their RIA application. -
Form ADV Part 1 (online only)
In Form ADV Part 1, the advisor will include only information about the RIA, such as ownership, clients, business practices, disciplinary events related to the advisor or its employees, and any affiliations. Form ADV Part 1 is also used to upload ADV Part 2A and ADV Part 2B. -
Form ADV Part 2A (paper and online)
In Form ADV Part 2A, the advisor will include information related to the RIA’s fees, services, disciplinary disclosures, and other relevant information. Form ADV part 2A also serves as the Firm’s Disclosure Brochure. In Nevada, the RIA must give this to prospective and current clients and be written in plain, understandable English. -
Form ADV Part 2B (paper and online)
The advisor will share information about themselves in Form ADV Part 2B. Advisors should include information about their education, employment history, potential conflicts of interest, and any disciplinary actions. It’s also required that any Executive Officers or representatives that advise clients must complete this form. Advisors must also give this brochure to clients.
If sponsoring a wrap fee program, Appendix 1 is also required. -
Form U4
This form is used to register the firm’s Investment Advisor Representative (IARs).
The state of Nevada may also require the following documents and processes:
-
Client Advisory Contract
RIAs must meet the regulatory standards for client advisory set by Nevada. This filing will ensure that the firm meets client contract and invoice requirements. -
Policies and Procedures Manual
This manual is the internal document for RIAs to uphold internal processes and procedures. This manual will contain information from how the RIA handles clients’ complaints to how it trains new IARs. There will also be information about Business Continuity, Anti-Money Laundering, Information Security, and Anti-Insider Trading plans. -
Privacy Policy Statement
The Privacy Policy Statement will be unique to its firm but must still meet Nevada’s compliance requirements. The statement must explain how the RIA handles, stores, and discloses client information. Advisors must supply the Privacy Policy Statement at the start of a working client relationship and every year after that. -
Code of Ethics
This filing ensures that the RIA meets the specific fiduciary requirements set by Nevada.
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.
To see how we’re helping RIAs streamline operations, reduce overhead, and elevate the client experience, 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.
