Scared of the compliance costs and challenges in starting a firm? Fear no more, XY Planning Network says.
The organization, which focuses on serving Generation X and Y advisors, has launched a new compliance solution to help young advisors looking to establish RIAs.
XYPN’s new and existing memberships will now include a new-RIA-registration package for advisors launching an RIA (including completing Form ADV, state registrations and more), and ongoing compliance support and tools for existing state-registered RIAs.
When advisors are first starting their own business, Alan Moore, who founded the XY Planning Network along with Michael Kitces, said, “I don’t want compliance to be a concern, and I know it is. It’s probably the number one concern besides, “How do I get clients?”
What Your Peers Are Reading
While initial RIA registration retail prices vary, Moore sees most advisors paying $3,000 or more for full assistance with the initial filings for their firm.
“If you can avoid writing a $3,000 check a couple months before you are up and running, that’s helpful,” Moore said in an interview with ThinkAdvisor.
The new XYPN compliance solution will be available at no additional cost for existing and new members, including the entire new RIA startup package for new members (which requires a 12-month membership commitment at the standard $397 per month XYPN membership fee).
Previously, XYPN gave its members the choice between what Moore called a “DIY” registration package or a $2,400 discounted registration package.
“We had a bunch of documents and guides and template documents and that sort of thing to help advisors with their compliance, but ultimately it was, I called it the DIY package,” he said. “[I]t was just a step-by-step ‘This is How You Navigate the FINRA Website’.”
If members didn’t want to take the DIY route, then Moore said they could pay $2,400, which was a discounted rate, to get registered.