- RIA Code of Ethics SEC Requirements for Advisors
The Code of Ethics Rules is one of many U.S. Securities and Exchange Commission regulations that financial advisory firms must follow when they register with the federal agency. This rule, which was implemented in 2004, establishes the standards of conduct and behavior for registered investment advisors (RIAs) to promote integrity, transparency and accountability. Want to… read more…
- 5 Ways Financial Advisors Can Breach Fiduciary Duty
Fiduciary duty is a legal obligation of a person or entity to act in the best interest of another party, typically a client. In the context of a financial advisor, this duty requires them to prioritize the financial goals and interests of their clients above their own, even when it might be more profitable for… read more…
- What Is the SEC’s Pay to Play Rule?
A core part of running an advisory business is ensuring that your practice complies with regulatory guidelines set by the Securities and Exchange Commission (SEC). One such guideline, Rule 206(4)-5 or the SEC pay-to-play rule, governs what advisors can and can’t do when making contributions to political campaigns. Advisors who violate this rule could find… read more…
- What Are the Know Your Client Rules for Financial Advisors?
Financial advisors are required to meet certain standards when adding new clients to their book of business or selling regulated products to existing clients. Under Know Your Client (KYC) rules, advisors must confirm clients’ identities while assessing suitability and risk. These rules fall under the umbrella of anti-money laundering (AML) practices that banks and other… read more…
- What Licenses Financial Planners Need to Have
Financial planners help clients manage their money to reach financial goals. While certain professionals may need a financial planning license, others do not. Whether you’ll need a license to work as a financial planner depends largely on the services you offer your clients. Let’s analyze how you can dissect the problem for yourself. Need help… read more…
- How to Find a RIA Compliance Consultant
Registered investment advisors (RIAs) must adhere to a multitude of regulations and compliance requirements. Staying on top of these ever-evolving rules and regulations can be a daunting task and failing to adhere to them can result in significant penalties. This is where a RIA compliance consultant can help. Let’s break down what these professionals do, why… read more…
- SEC Exam Priorities for 2026
The SEC’s Division of Examinations (commonly known as EXAMS) is the oversight branch of the Securities and Exchange Commission that’s charged with ensuring registrants adhere to regulatory standards. Established advisors can expect to be examined roughly every four to seven years, which should allow you plenty of time to prepare. Reviewing SEC exam priorities for… read more…
- Errors and Omissions (E&O) Insurance for RIAs and Advisors
Errors and omissions insurance helps financial advisors and registered investment advisors (RIAs) protect themselves against client claims stemming from professional mistakes, negligence or failure to deliver promised services. This type of professional liability insurance can help cover legal defense costs, settlements or court judgments. Given the regulatory environment and level of client scrutiny advisors face,… read more…
- What to Know About the SEC’s ESG Investing Rules
The rules around ESG investing might soon change. On September 20, the SEC updated its rules that govern environmental, social and governance (“ESG”) investment funds. The new rule updates how these funds are named, requiring a fund that advertises itself as ESG to hold at least 80% of its investments in related assets. From a… read more…
- Ultimate Guide to SEC Compliance for Financial Advisors
The Securities and Exchange Commission (SEC) oversees the enforcement of financial securities laws. On its website, the SEC has organized some of its compliance guides for small businesses and brokerages. It lists nearly 80 individual topics, each of which takes you to a guide that, itself, is just a summary of much more in-depth issues. This… read more…
- Anti-Money Laundering (AML) Compliance Checklist for Advisors
Navigating the complex maze of financial regulations may seem daunting as a financial advisor, yet it remains a crucial responsibility of your profession. Take, for instance, Anti-Money Laundering (AML) Compliance – a set of rules that, when misunderstood or overlooked, can lead to detrimental consequences. These are good regulations that help protect client money and… read more…
- Ultimate Guide to SEC’s New Cybersecurity Rules
The SEC has decided that cybersecurity and related issues are now a material risk that public companies must disclose. As a result, in July of this year, the agency released a new rule on the issue. Registered companies must disclose material cybersecurity incidents as they happen. Registered companies must also make cybersecurity risk management part of… read more…
- What Is SEC Form D for RIAs?
The Securities and Exchange Commission allows certain companies to sell stock to a select number of investors without having to go through the IPO process. This is done under a Regulation D exemption, which lets companies that meet specific requirements raise capital without having to submit to an extensive and costly registration process that is… read more…
- What Is the SEC Fee and How Much Do Advisors Pay?
Investing involves many complexities, and one frequently overlooked cost is the fee imposed by the Securities and Exchange Commission (SEC). This SEC fee is a transaction charge that financial advisors must pay when selling exchange-listed and over-the-counter securities to support the SEC’s operations. In May 2024, the fee more than tripled from $8 per million… read more…
- Financial Planning Regulation
The term ‘financial planner’ can apply to a broad range of professionals, including accountants, insurance agents and investment advisors. If you work in any of those capacities or a related field, it’s important to understand the regulatory guidelines that apply. Financial planning regulation encompasses a broad range of requirements and rules. The type of regulation… read more…
- SEC Marketing Rule Frequently Asked Questions (FAQs) for Advisors
If you’re an investment advisor, whether you’re a seasoned pro or just starting out, deciphering rules and regulations like the Securities and Exchange Commission (SEC) Marketing Rule is key to your success and compliance. This rule specifically highlights what advisors can and cannot do when marketing their services to potential clients. Failing to adhere to… read more…
- Custody Rule FAQ for Registered Advisors
The Securities and Exchange Commission (SEC) regulates the activity of registered investment advisors. Advisors must adhere to numerous compliance rules outlined in the Investment Advisers Act. Rule 206(4)-2, known as the custody rule, outlines RIA duties regarding holding client assets. Add new clients and AUM at your desired pace with SmartAsset’s Advisor Marketing Platform. Sign… read more…
- RIA Compliance Requirements
Compliance is one of the most important, and often misunderstood, parts of running a registered investment advisor firm. Regulations shape how advisors communicate, manage client relationships and document their advice, yet many of these rules operate quietly in the background until something goes wrong. Understanding RIA compliance requirements isn’t just about avoiding penalties; it’s about… read more…
- 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, investment advisors, mutual funds and securities exchanges, among others. As stated by USA.gov, the SEC’s mission is to “promote fair dealing, the disclosure of important market information, and… read more…
- What Is a RIA Custodian?
Behind every registered investment advisor is a custodian quietly handling the mechanics that keep client assets safe and accessible. While advisors focus on planning and relationships, custodians play a crucial role in executing trades, maintaining records and providing transparency. Yet many advisors don’t fully understand what custodians do, or how choosing the right one can… read more…
- What Most Advisors Are Missing About SECURE 2.0 Act
When President Joe Biden signed SECURE 2.0 Act into law in late December 2022, advisors began digesting the provisions of the legislation. The changes inside SECURE 2.0 range from new rules related to 529 college savings plans to when retirees should take… read more…
- FTC Bans Non-Compete Clauses. What Does It Mean for Financial Advisors?
A proposed rule from the Federal Trade Commission (FTC) could ban employers from binding up employees with non-compete clauses. If passed, this rule could increase career opportunities for millions of Americans. And it could change the way employers endeavor to… read more…
- Brokers, Take Notice: Industry Watchdogs Eye Reg BI Compliance
Financial professionals recently received a reminder that industry overseers are closely monitoring how firms are implementing standards and practices under Regulation Best Interest (Reg BI). In mid-January, the Financial Industry Regulatory Authority (FINRA) issued an annual report that, among other… read more…
- CFP Board Publishes New Crypto Guidance for Advisors
When providing financial advice on cryptocurrencies, certified financial planner (CFP) professionals have fresh guidance from the CFP Board. The governing organization published a notice recently in response to questions about applying the CFP Board’s “Code of Ethics and Standards of Conduct”… read more…
- Advisors Should Understand These 2023 Tax Changes Now
As the New Year arrives, financial advisors should be looking ahead to 2023, understanding what tax changes will impact clients and what they can do to plan ahead. For financial advisors, the 2023 tax year won’t be chock-full of major… read more…