More On Legal & Compliancefrom The Advisor's Professional Library
- RIAs and Customer Identification Just as RIAs owe a duty to diligently protect their clients privacy and guard against theft, firms also play a vital role in customer identification. Although RIAs are not subject to an anti-money laundering rule, securities regulators expect advisors to address these issues in their policies and procedures.
- Conducting Due Diligence of Sub-Advisors and Third-Party Advisors Engaging in due-diligence of sub-advisors isnt just a recommended best practice it is part of the fiduciary obligation to a client. An RIA should be extremely reluctant to enter a relationship with a sub-advisor who claims the firms strategy is proprietary.
Here's a breakdown of how, and where, advisors and brokers are registered. The numbers were presented by Melanie Lubin, Maryland's Securities Commissioner, at the ALI-ABA investment advisor regulation conference in Washington in late January.
- 24,481 total advisors are listed on the Investment Adviser Registration
- 10,977 advisors are SEC registered only
- 192 advisors are dually registered with the states and SEC
- 13,312 are state registered advisors
- 1,109 firms are B/Ds and advisors
- 225,000 are B/D reps
- 200,000 reps are also registered as B/D agents
- 4,000 reps are associated with both state and federally registered firms