How to Register With the SEC as an Investment Advisor

The Securities and Exchange Commission (SEC) is a federal agency responsible for overseeing key aspects of the investment industry. Its regulatory scope includes securities brokers and dealers, mutual funds, securities exchanges and registered investment advisors (RIAs). To register with the SEC as an investment advisor, firms must file Form ADV through the IARD system, pay a registration fee based on AUM and wait up to 45 days for approval.

Are you looking to expand the marketing of your financial advisor practice? Try SmartAsset AMP, a holistic client prospecting and marketing automation platform.

Registering With the SEC vs. Registering With the State

Any advisor who is thinking about going independent should first ask themselves this question: Am I required to register with the SEC, or do I register with the state instead?

The answer depends on the amount of assets you manage. Here are the requirements to register as an investment advisor:

State Registration Is Required When…	SEC Registration Is Required When…
Advisors start an RIA with $0 AUM, and do not expect to reach $100 million AUM within 120 days of registering.	AUM exceeds $110 million.
Total AUM is below $100 million.	Advisors serve registered investment companies or business development companies.
	Advisory firms operate in 15 or more states, regardless of AUM.
	Foreign private advisors manage $25 million or more in aggregate AUM attributable to at least 15 U.S. clients or investors in private funds.
	Newly established firms expect to have $100 million in AUM within 120 days of registering as an RIA.

Advisors managing more than $100 million but less than $110 million can choose whether to register with the SEC or the state.

Client Acquisition Simplified: For RIAs

Ideal for RIAs looking to scale.
Validated referrals to help build your pipeline efficiently.
Save time + optimize your close rate with high-touch, pre-built campaigns.

CFP®, CEO

Joe Anderson

Pure Financial Advisors

We have seen a remarkable return on investment and comparatively low client acquisition costs even as we’ve multiplied our spend over the years.

Pure Financial Advisors reports $1B in new AUM from SmartAsset investor referrals.

Registering With the SEC: A Step-by-Step Guide

Registering as an investment advisor with the SEC is a multi-step process with ongoing annual registration requirements.

Keep in mind that it’s the advisory firm itself that must register with the SEC, not the individual people who work with clients on behalf of the firm. These professionals, known as investment advisor representatives (IARs), may also have state registration or examination requirements, such as the Series 65 or a combination of the Series 7 and Series 66, depending on the circumstances.

Here are some of the main steps in the registration process:

1. Create an IARD account

The first step to registering as an SEC investment advisor is creating an Investment Advisor Registration Depository (IARD) account. The IARD is the online system RIAs use to file and update Form ADV. Members of the public can use this system to look up and research investment advisors registered with the SEC or state regulatory authorities.

You’ll need to complete an Entitlement form and submit it to FINRA. Once FINRA approves your request for IARD access, you’ll be issued a user ID and password to log in to your account. You can then deposit funds to your flex funding account, which acts as an online wallet when paying FINRA exam fees and SEC registration fees. You must fund your wallet before you can submit your registration filing.

2. Submit Your Form ADV to the SEC

Two financial advisors review their firm's SEC registration.

Using the IARD system, you’ll submit your initial Form ADV to apply for SEC registration. This form provides details about an investment advisor’s business, including ownership, clients, employees, business practices and disciplinary events. There are three parts to submit:

Form ADV Part 1	The SEC uses Part 1 of Form ADV to collect basic details about your firm, including your place of business, AUM, client demographics and ownership structure.
Form ADV Part 2	Part 2 of Form ADV consists of your brochure and brochure supplement. This is a more detailed disclosure that covers your firm’s business practices, fees, conflicts of interest and disciplinary history.
Form ADV Part 3	Form ADV Part 3 is the client relationship summary (CRS) that briefly outlines your firm’s services, fees, standards of conduct and conflicts of interest. This form is required if you serve retail investors.

The SEC charges an initial registration fee that’s based on your AUM. As of 2026, the registration fee is $225 for firms with $100 million in AUM or more, $150 for firms with between $25 million and $100 million, and $40 for those with under $25 million in AUM. Exempt reporting advisors (ERAs) pay $150.

3. Wait for Registration Approval

Within 45 days of filing, the SEC must either grant registration or begin proceedings to determine whether registration should be denied, unless the applicant consents to a longer review period. If the Form ADV was incomplete or submitted incorrectly, the SEC will give the firm an additional 45 days to resubmit its documentation.

Keep in mind that until you receive confirmation from the SEC, you are not legally registered. Advising clients without registration could trigger enforcement actions, including fines, criminal penalties and a permanent ban on being able to register in the future. You can use the FINRA BrokerCheck tool to review your registration status.

4. Update Form ADV Annually

The SEC requires firms to amend their Form ADV no later than 90 days after the end of each firm’s fiscal year, as well as during the year to reflect “material changes” as they occur. For example, firms operating on a calendar year have until March 31 to amend their annual amendment. These mandatory updates are required to ensure transparency and protect investors, so it’s important to give yourself enough time to meet your annual filing deadline.

5. Maintain Your Books

According to the Investment Advisers Act of 1940, investment advisors must maintain “true, accurate and current” books and records related to their investment advisory business.

Under Rule 204-2 of the law, investment advisors who are registered or required to register with the SEC must keep bank statements, bills and cash receipts, among other records.¹ This includes “a memorandum of each order given by the investment adviser for the purchase or sale of any security.”

Registering With the SEC: Next Steps

Once you’re officially registered with the SEC, you can put your marketing strategy to work to attract new clients.

In terms of how advisors market their RIAs, it varies by age and level of experience. Younger advisors tend to favor social media, websites and search engine optimization (SEO), according to J.D. Power’s 2025 U.S. Financial Advisor Satisfaction Survey.² Established advisors, meanwhile, lean into seminars, webinars and in-person events to attract new clients. Employing a mix of marketing strategies and exploring the benefits of lead generation services can help you figure out what works best for your firm.

That’s where SmartAsset AMP can potentially provide value. This end-to-end marketing solution can help fiduciary financial advisors automate parts of their outreach and lead generation workflows, which may free up more time for client service and business development. The platform includes prospect connections, live connections with leads, compliant automated text outreach and email nurture campaigns to support follow-up with prospects who may require a longer sales process.

Meanwhile, AMP’s Outreach Automation Tool can help advisors cut down on the time it takes to manually track leads and communicate with them automatically. Schedule a free demo to learn how you can leverage it to grow your book of business.

Benefits of Registering With the SEC

Becoming a registered investment advisor with the SEC offers several advantages. It enhances your firm’s credibility, provides access to valuable educational resources and ensures regulatory support.

One of the key benefits of SEC registration is the trust it fosters with potential clients. Investors can review a firm’s Form ADV to examine its regulatory history, past infractions, fee structures, conflicts of interest, and other critical details. Additionally, SEC-registered advisors are held to a fiduciary standard, requiring them to always act in their clients’ best interests.

Registered advisors also gain access to the SEC’s Compliance Outreach Program, which offers essential compliance tools, including self-inspection checklists, educational materials and a quick-reference series on frequently addressed SEC compliance topics.

Frequently Asked Questions (FAQs)

What Is the Cost of Starting an RIA?

The average cost to start an RIA is around $25,000, though it’s possible that your budget may be larger or smaller. Some of the typical RIA startup costs to plan for include SEC registration and FINRA exam fees, technology purchases, marketing and an initial cash reserve to cover operating costs until your new firm becomes profitable.

What Are RIA Compliance Requirements?

RIAs are subject to strict compliance requirements that cover virtually every aspect of their business. Two areas of priority concern for the SEC are marketing and cybersecurity. The SEC’s marketing rule regulates what advisors can and cannot say when promoting their firms, while the cybersecurity rule outlines procedures for monitoring, mitigating and reporting threats.

Should I Start an RIA or Join One?

You may consider starting an RIA if you’d like complete control and freedom over how you operate your firm, including the types of clients you serve, the services you offer and the fees you charge. On the other hand, you may consider joining an established firm or an RIA aggregator if you’d prefer to rely on an existing framework for branding, marketing and lead generation.

Bottom Line

Financial advisors from a firm shake hands with a new client.

Registering as an investment advisor with the SEC first requires an understanding of what constitutes a registered investment advisor (RIA) and whether to register with the SEC or a state authority. Firms that require SEC registration will need to create an IARD account, submit Form ADV, pay a registration fee and update their documentation on an annual basis.

Tips for Expanding Your Advisory Business

If you’re looking to scale your business but have limited time to devote to growth, consider automating your client outreach and lead generation efforts. SmartAsset AMP (Advisor Marketing Platform) is a holistic marketing service financial advisors can use for client lead generation and automated marketing. Sign up for a free demo to explore how SmartAsset AMP can help you expand your practice’s marketing operation. Get started today.
Specializing in a specific demographic or financial need, such as retirees, business owners or young professionals, can differentiate you from competitors. A target market focus allows you to tailor your services and marketing efforts, making your value proposition clearer to potential clients in that segment.

Article Sources

All articles are reviewed and updated by SmartAsset’s fact-checkers for accuracy. Visit our Editorial Policy for more details on our overall journalistic standards.

“Books and Records to Be Maintained by Investment Advisers.” Electronic Code of Federal Regulations, 17 CFR § 275.204-2, https://www.law.cornell.edu/cfr/text/17/275.204-2.
JD Power 2025 U.S. Financial Advisor Satisfaction Study. JD Power, 16 July 2025, https://www.jdpower.com/business/press-releases/2025-us-financial-advisor-satisfaction-study