If you’re planning to start an RIA, you’ll need to familiarize yourself with the requirements of the state you will operate in. In this article, we will cover the requirements for Oregon
Who is required to register in the state of Oregon?
Advisors managing less than $100 million in AUM and located in Oregon must register with the state. Firms managing more than $100 million in AUM and are regulated through the Securities and Exchange Commission (SEC) must file notice through the Investment Advisor Registration Depository (IARD) and amend their Form ADV to add Oregon as a notice filing jurisdiction.
Before we proceed, consider hiring a compliance consultant to help make this process easier for you.
Financial statement requirements for the state of Oregon:
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. Alternatively, an advisor may show proof of licensing as an Investment Advisor Representative (IAR) in another state within the previous two years before filing their application in Oregon.
In addition to paying all the state’s registration filing fees, advisors must complete the following forms and policy requirements for starting an RIA in Oregon:
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Submit FINRA Entitlement Paperwork
To file a registered investment adviser application, advisors must apply for access to FINRA’s WebCRD/IARD online platform. While FINRA doesn’t regulate or supervise RIA’s, the state of Oregon uses its system to process RIA applications. -
Form ADV Part 1 (online portion)
This is your application's online portion and contains information about your RIA only. Information about the advisor will be found in Form ADV Part 2B. Form ADV Part 1 also serves as the uploading channel for ADV Part 2A and ADV Part 2B. -
Form ADV Part 2A (paper and online)
This portion of the ADV has information about your RIA and is also the firm’s brochure and must be given to all clients and prospective clients.
In this brochure, you will describe your firm’s fees, services offered, disclosures of disciplinary actions, and other relevant details. It also must be written in plain, simple-to-understand English. -
Form ADV Part 2B (paper and online)
This is another brochure that, in most cases, is given to clients and prospective clients. The Form ADV Part 2B requires Investment Advisor Representatives (IARs) to disclose their educational background, work history, potential conflicts of interest, and any disciplinary actions.
It should also be noted that any Executive Officers who offer investment advice, including representatives who advise clients, must also complete this form. -
Code of Ethics
This filing ensures that your RIA is adhering to the standards set by the State of Oregon.
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Client Advisor Contract
The client advisory contract must follow the regulatory authority standards set forth by the State of Oregon. -
Privacy Policy Statement
Advisors must give the Privacy Policy Statement to clients at the start of their relationship and annually.
The RIA will explain how the firm handles, stores, and shares client information in this document. It’s customized to the firm's specific needs but must comply with regulations established by Oregon. -
Policies and Procedures Manual
The sole purpose of this manual is to be the guiding document for the firm to maintain and enforce the RIA’s internal policies. This manual should list everything from how the firm handles client complaints to how it trains new IARs. It should also include Anti-Insider Trading plans, Business Continuity, Anti-Money Laundering, and Information Security. While this is customized to your firm, it still must meet the State of Oregon’s compliance requirements. - Financial Documents
Advisors are also asked to provide a $10,000 surety bond, financial statements, and proof of Errors and Omissions (E&O) insurance coverage of at least $1 million if applying for state licensing.
Starting an RIA doesn’t have to be overwhelming with the right resources, such as our comprehensive RIA launch kit.
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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.
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.
