This Client as Investor/Owner in RIA – Checklist of Compliance Issues is a sample checklist of compliance issues and best practices for an investment adviser with a client who is investing in the ownership of the investment adviser firm itself.
Although RIA Compliance Consultants strongly recommends that an investment adviser firm avoid scenarios where a client is making an equity investment in the ownership of the investment adviser firm, this checklist identifies some of the risk and compliance issues/best practices that an investment adviser firm may face if moves forward with such a transaction. This checklist is merely a sampling of some of the compliance issues/best practices and should not be considered comprehensive listing of the risks associated with such a transaction. The checklist is provided for educational or background purposes and is not a substitute for working with local legal counsel. RIA Compliance Consultants offers no assurances that these best practices will be successful or accepted by a securities regulator.
Please note that depending upon the facts and circumstances, a securities regulator may treat such a transaction as unethical and/or securities transaction under applicable statutes/rules and/or as a breach of an investment adviser firm’s fiduciary duty.
This sample checklist of compliance best practices does not include any legal documents necessary to effect a transaction where a client makes an investment in the equity ownership of the firm. An investment adviser firm considering such a transaction, despite our recommendation to the contrary, should retain local legal counsel experienced in such matters to provide specific guidance and prepare any necessary legal forms. RIA Compliance Consultants is not a law firm and does not provide legal advice or services.
Included with Gold & Platinum Packages. Last Updated in November 2021.
This sample document is merely an example for general reference and educational purposes. RIA Compliance Consultants, Inc. is providing this sample document to the purchaser on an “as is” basis with no warranty or guaranty whatsoever.
This sample document should be considered a starting point, and purchaser should not treat this sample document as a final document ready for use. The sample document has not been customized to the purchaser’s business model, the specific investment advisory rules applicable to the purchaser’s investment adviser or the written supervisory procedures and code of ethics of purchaser’s investment adviser.
This sample document may not be applicable or appropriate for every investment adviser. The purchaser should not consider a sample document purchased from our online store as an exhaustive, comprehensive or definitive list of the items necessary to meet the purchaser’s obligations under the applicable investment adviser laws and rules.
This sample document is not intended to detect or prevent fraud, selling away, Ponzi schemes, undisclosed outside business activities, inaccurate or false fee calculations, theft, misappropriation or unlawful conversion of client funds.
Due to changes of investment adviser laws and rules, this sample documented may become outdated and need to be updated or discontinued. RIA Compliance Consultants, Inc. will not be providing any subsequent updates of this sample documents to the purchaser. Likewise, RIA Compliance Consultants, Inc. will not be monitoring and reporting to the purchaser any issues related to the use of this sample document.
Since this sample document may not reflect the specific investment advisory requirements of the purchaser’s securities regulator, the purchaser should check with the securities regulator(s) with jurisdiction over its investment adviser or review any applicable rules before using this document.
This sample document is not a substitute for retaining a compliance professional to advise and assist the purchaser regarding its investment adviser’s compliance program. Unless otherwise agreed to in writing, the purchaser understands that the purchaser has not engaged RIA Compliance Consultants, Inc. in a consulting relationship by merely purchasing or utilizing a sample form. Additionally, the purchaser understand that unless otherwise agreed to in writing, RIA Compliance Consultants, Inc. is not responsible for customizing this sample document, updating the sample document, preparing the purchaser’s written supervisory procedures or code of ethics, or notifying the purchaser of changes to the investment adviser laws and rules.
Purchaser is not authorized to re-sell this sample document nor license the use of this sample document to a third-party.
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