NEW YORK, June 28, 2016 /PRNewswire/ -- Today, RIA in a Box® (www.riainabox.com), a leading provider of registration, compliance, and operations support services to registered investment adviser (RIA) firms, released a new e-book titled "How an Independent Broker Dealer Rep Can Start an RIA Firm: A Step by Step Guide."
Economics and asset requirements of operating an independent RIA firm
RIA registration process steps and costs
Navigating RIA compliance, operations, and technology needs
Creating long-term business enterprise value by becoming fee-only
Differences between operating as a hybrid advisor compared to RIA-only
Benefits of being able to use the new "level fee fiduciary" exemption
"With the looming Department of Labor (DOL) fiduciary rule, we are seeing an unprecedented number of current independent broker dealer reps exploring the opportunity to become a hybrid or fee-only advisor by starting their own RIA firm. We hope that this latest resource helps to better educate advisors on the intricacies of this pivotal business decision," says Steve Swansig, Vice President of Sales and Business Development at RIA in a Box®.
The e-book also includes detailed financial operating models comparing the profitability of affiliating with an independent broker dealer versus establishing an independent RIA firm. The scenarios detailed include a solo advisor and single support staff member with $40 million in assets, a two advisor and single support staff member team with $80 million in assets, and a four advisor and four support staff member team with $200 million in assets.
"There has been quite a bit of misinformation spread in regards to the minimum level of assets under management (AUM) required to succeed as an independent RIA. Today, the median AUM of all RIA firms is less than $20 million and more than 23,000 firms operate with less than $100 million in AUM. Furthermore, the number of total registered firms of all sizes continues to grow as the costs of operating an independent RIA firm steadily decline," says GJ King, President of RIA in a Box®.
RIA in a Box® is a fast-growing, entrepreneurial financial services firm that is a leading provider of registration, compliance, and operations support services to registered investment adviser (RIA) firms throughout the United States. Since 2005, our mission has been to enable fellow entrepreneurs to create their own registered investment advisory firms and receive the ongoing support they need to successfully operate while maintaining constant regulatory compliance.
Our MyRIARegistration™ solution guides prospective RIA firms through the entire registration and business planning process. Once a firm is established, our MyRIACompliance™ investment adviser compliance programs pair our award-winning online software platform with compliance consulting expertise provided by our team of former regulators. In addition, our MyRIAOperations™ solution supports RIA firms with an integrated technology platform that helps to automate and more efficiently manage client communication, billing, and reporting.