More On Legal & Compliancefrom The Advisor's Professional Library
- Trading Practices and Errors When SEC-registered investment advisors conduct annual audits of firm policies and procedures, they should pay close attention to trading practices. Though usually not required to, state-registered advisors should look at their trading practices and revise policies that do not fully protect clients.
- Client Communication and Miscommunication RIA policies and procedures must specify what type of communications should be retained. The safest course of action is for RIAs to retain all communicationsto clients, from clients, and about client accounts. To comply with fiduciary obligations, communications must be thorough and not mislead.
Trust Co. of America announced Tuesday that it has partnered with the compliance firm RIA in a Box to help breakaway brokers in Trust Co.’s Advisor Pathways program decide whether they want go independent, join an existing RIA firm, or sell their practice and exit the market.
Josh Pace, senior vice president of Business Development for Trust Co., says that the Denver-based custodian started talking about forming an alliance with RIA in a Box, based in Manhattan, last December, as “both companies get approached by brokers looking to become independent and looking for help with registration, compliance, custody and technology” issues.
The alliance, Pace says, strengthens both firms’ offerings. “Working together, Trust Co. of America and RIA in a Box can offer a package of services to advisors who want to start their own RIA and focus on what each company is good at.”
The Advisor Pathways program, Pace continues, “is geared toward those breakaway brokers who are thinking of going independent and are not sure whether to start their own RIA or join an existing RIA. For those who want to join an existing RIA, Trust Co. of America can help match them up with established RIA’s on the Trust Co. of America Platform.”
For brokers looking to start their own RIA, Trust Co.’s partnership with RIA in a Box will help offer those brokers “a solution to getting registered and working through the compliance process. Once those brokers become RIAs, they have the ability to use Trust Co. of America for their custody and technology platform,” Pace adds.
A "handful of advisors" are already interested in taking advantage of the alliance, Pace says, and “we hope to have a few signed in the near future.”
The alliance with RIA in a Box is another strategic move Trust Co. is making to help solidify its foothold in the RIA marketplace. In late April, Denver-based Trust Co. announced that it had added eight new advisors to its custodial platform, bringing total assets under custody to $12 billion.
“We’re proud of the results we achieved in Q1, particularly in reaching a record level of assets under custody, which is a testament to our clients’ success,” said David Barry, Trust Co. of America’s CEO, in a statement. “In partnership with our RIAs, we will work hard to help continue their momentum and growth.”
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