Starting an RIA is exciting, but it’s important to know that it will differ by state. In this article, we’ll explore the requirements for Virginia.
Who is required to register as an RIA in Virginia?
Virginia-based investment advisors with 5+ clients, less than $100m AUM, or who actively advertise their services must register as an RIA.
If an advisor manages more than $100M in AUM, they may consider registering with the SEC
Key Takeaways from this article:
- Instead of handling this on your own, hiring a compliance consultant is recommended. If not possible, this article outlines the documents an advisor must submit to register in Virginia.
- To register in Virginia, financial advisors must have either Series 65, Series 66 and Series 7, or the CFP, CFA, CIC, ChFC, or PFS designation.
In addition to paying all of the State of Virginia registration filing fees, here are the general requirements for registration:
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.
- Form ADV Part 1 (online portion)
This is the online portion of the RIA’s registration document. Its primary focus is to share information about the firm. Also, ADV Part 1 is used to upload the firm’s Form ADV Part 2A and 2B.
- Form ADV Part 2A (paper and online)
This is a brochure about your firm, containing information about fees, services, disciplinary disclosures, and other important information for clients. This must be provided to all clients and written in plain English so clients can easily read and understand it.
- Form ADV Part 2B (paper and online)
This paper brochure includes information about your education, employment, any conflicts of interest, and disciplinary information. Additionally, anyone giving investment advice, including executive officers, must have this form too. This form is required to be given to clients.
This must be given to clients at the start of their working relationship and every year after that. It must explain how the RIA plans to store, handle, and disclose the client’s information. Each statement will be unique to the RIA; however, it must meet the state’s compliance requirements.
- Client Advisor Contract
This must meet the regulatory authority standards for client advisory set by the state and will need to include an investment policy statement.
- Policies and Procedures Manual
This guide is used to maintain and enforce the firm’s internal policies. It must include details about how the firm handles client complaints and trains new investment advisor representatives. It should also contain details about the firm's business continuity plan, anti-money laundering policy, information security policy, anti-insider trading policy, and other aspects of your RIA.
- Code of Ethics
Advisors must submit this to show Virginia they meet the state's standards.
Starting an RIA in Virginia can be easily done with the right resources. If you want to learn more, we invite you to download our comprehensive 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.