United States
Hong KongStarting your own RIA: what it takes
Register as an investment adviser with your state or the SEC, build a compliance program, select a custodian and technology stack, and bring clients. The first three are process; the fourth decides whether it works.
More accessible than it used to be, and the accessible part is not the part that determines success.
The steps
- Form the entity and decide on the structure.
- Register as an investment adviser - with the state, or the SEC above the assets threshold.
- File Form ADV, including the brochure clients receive.
- Build a compliance program, with policies, a code of ethics and a chief compliance officer.
- Obtain errors and omissions insurance and any bonding required.
- Select a custodian.
- Select a technology stack - planning software, portfolio management, CRM, billing.
- Bring clients.
Steps one to seven are a process with known costs. Step eight is the business.
State or SEC
Generally state registration below a hundred million dollars of regulatory assets under management and SEC registration above it, with a buffer and several exceptions including advisers operating in many states.
Most new firms register with a state. Requirements vary between states, including on net worth and bonding, and checking your own before planning anything is the first task.
Do you have clients who will follow you? Most successful launches come from an adviser with an existing book and a clean position on non-solicitation. Starting with no clients and no niche is a much harder proposition than the setup guides suggest.
The costs
Registration fees, legal or compliance consulting, technology subscriptions, insurance, and living expenses through a revenue ramp.
The last is the one that decides survival. A fee-based practice builds recurring revenue slowly by design, and the runway needed is measured in a year or more rather than months.
Compliance is not optional
A written program, an annual review, a code of ethics, personal trading records, advertising review, books and records, and a Form ADV updated annually.
Small firms outsource much of it to compliance consultants. Doing it badly is the most common reason a small RIA has a difficult examination.
The alternative
Joining an existing RIA, or affiliating with a platform providing compliance, technology and custody in exchange for a share of revenue.
That is a legitimate route and frequently the better one for a first practice - it removes six of the eight steps and leaves the one that matters.
Compensation figures are from CFP Board's own 2026 study unless stated otherwise. CFP Board sells the certification, which is worth knowing when reading a premium it reports.
Common questions
How do you start an RIA?
Form the entity, register with your state or the SEC, file Form ADV, build a compliance program, obtain insurance, select a custodian and technology, and bring clients.
State or SEC registration?
Generally state below a hundred million dollars of regulatory assets under management and SEC above it, with a buffer and exceptions. Most new firms register with a state, and requirements vary.
What decides whether it works?
Clients. Most successful launches come from an adviser with an existing book and a clean position on non-solicitation. Starting with no clients and no niche is much harder.
What does it cost?
Registration fees, compliance consulting, technology, insurance - and living expenses through a revenue ramp measured in a year or more, which is the cost that decides survival.
Is there an easier route?
Joining an existing RIA or affiliating with a platform that provides compliance, technology and custody for a share of revenue. It removes most of the setup and leaves the part that matters.