While starting an RIA is exciting, it's crucial to understand the state-specific requirements. This article will examine the requirements for Utah.
Who is required to register as an RIA in Utah?
If you're an investment advisor in Utah with less than $100 million in assets, have more than five clients in Utah, or actively trying to get clients in Utah, you will have to register with the state as an RIA. Advisors managing over $100 million in AUM may consider registering with the SEC.
Hiring a compliance consultant can make navigating this process easier, but if not, this article can provide the necessary guidance.
Statement requirements for RIAs in Utah:
To work as an investment advisor representative in Utah, you must have one of these licenses: Series 65, Series 66 and Series 7 combined, or CFP, CFA, CIC, ChFC, PFS.
You'll also have to fill out a form called the U-4 and the ADV Part 2B.
Policy and Form requirements for starting an RIA in Utah:
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
While FINRA doesn’t regulate or supervise RIAs, the state uses its system to process applications. Therefore advisors will need to apply for an account in FINRA’s WebCRD/IARD online system. - Form ADV Part 1 (online portion)
This section of the ADV pertains exclusively to information regarding the RIA. Personal information is submitted through Form U4 and ADV Part 2B. The ADV form serves as the online component of the registration process and also serves as the platform for uploading ADV Part 2A and ADV Part 2B. - Form ADV Part 2A (paper and online)
This brochure provides important information about your firm such as the fees, services, disciplinary disclosures, and other details about your RIA. It’s intended to be shared with all prospective and current clients. As per the regulations in Utah, it must be presented in clear and easily comprehensible language. - Form ADV Part 2B (paper and online)
Form ADV 2B is a brochure that IARs are typically required to provide to clients. It contains information on the education, employment, potential conflicts of interest, and disciplinary actions of the individual advisor or representative. Both executive officers who provide investment advice and representatives who advise clients must also have this form.
- Client Advisory Contract
This contract must meet the standards for client advisory contracts set by the appropriate regulatory authority in Utah. Additionally, it must incorporate an investment policy statement. - Code of Ethics
Filing a Code of Ethics ensures that your firm adheres to the standards set by Utah. - Privacy Policy Statement
Clients must receive the Privacy Policy Statement from the firm at the onset of their relationship and annually after that. The statement should clearly outline the firm's practices regarding storing, handling, and sharing client information. The Privacy Policy Statement is customized to the firm's specific needs and must comply with the regulations set by Utah. - Policies and Procedures Manual
This manual outlines the firm's internal procedures, including handling customer complaints and training new IARs. It also has information on Business Continuity, Anti-Money Laundering, Information Security, and Anti-Insider Trading Plans.
In summary, registering as an RIA in Utah involves meeting financial statement requirements, obtaining relevant professional designations, and submitting the necessary forms and documents.
Although starting an RIA can seem overwhelming, the potential rewards make it worthwhile. Our team has developed a comprehensive RIA launch kit to assist with the process.
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.
