Essential Tips for Newly Registered Investment Advisers

19.07.24 08:53 PM By Jaye Faggett

Congratulations on becoming a registered investment adviser! As you embark on this new journey, here are some crucial points to keep in mind:

  1. Compliance is key:Familiarize yourself with all applicable regulations, including the Investment Advisers Act of 1940. Develop and maintain a comprehensive compliance program to ensure you're always operating within legal boundaries.
  2. Fiduciary duty: Remember that as an investment adviser, you have a fiduciary duty to your clients. This means always putting their interests first and providing advice that's in their best interest.
  3. Disclosure requirements: Be transparent about your services, fees, and any potential conflicts of interest. Ensure your Form ADV is accurate and up-to-date.
  4. Recordkeeping: Maintain detailed records of all client interactions, transactions, and advice given. Good recordkeeping is not only a regulatory requirement but also protects you in case of disputes.
  5. Cybersecurity: Implement robust cybersecurity measures to protect your clients' sensitive information. This includes secure data storage, encryption, and regular security audits.
  6. Continuing education: Stay informed about industry trends, new regulations, and investment strategies. Consider joining professional organizations for networking and learning opportunities.
  7. Marketing regulations: Be aware of the strict rules governing how investment advisers can market their services. Avoid any misleading statements or promises of guaranteed returns.
  8. Regular self-audits: Conduct periodic reviews of your practices to ensure ongoing compliance and identify areas for improvement.

By focusing on these key areas, you'll be well-positioned to build a successful and compliant investment advisory practice.


Let us help you navigate these requirements. Here at Providence Compliance we are eager to help you understand regulatory requirement and build a compliance program that is both effective and efficient.

Jaye Faggett