The Road to Independence Starts Here
Becoming an RIA can feel like a challenging journey. It doesn’t have to be with AssetMark.
Become an RIA
Gain Insight into the RIA Journey
At AssetMark Institutional, we support a variety of financial advisors—including those advisors who are thinking about becoming an RIA. You might be an employee at a wirehouse, an IBD-registered representative, or another type of financial professional. No matter where you are now, you know that becoming an independent RIA is where you want to go. Discover the steps you need to take and how AssetMark Institutional can help.
Pre-Transition
Stay Compliant
If you currently work for or with a broker-dealer, you’ll want to make sure that you’re in compliance with their policies first. Review the Broker Protocol, your contract with them, and any other relevant legal documents to make sure you don’t accidentally fall out of compliance when you do go independent.
Make a Business Plan
When you become an RIA, you’re essentially launching your own startup. Form a plan that lays out your value proposition, your mission and vision, goals, key performance indicators, and more. That way, you’ll never be at a loss for what to do next.
Create Your Brand Identity
If you’re leaving a broker-dealer, you’re going to be asking your clients to come with you. That means you’re asking them to leave an established entity to go… where, exactly? Without a strong brand identity, clients won’t have anything to put their trust in. Building this identity now ensures that it’s robust right out of the gate.
Partner Selection
Identify RIA Transition Firms
Whether they’re a law firm, business consultants, or a turnkey asset management platform like AssetMark Institutional, identifying an organization that can support you throughout your transition is essential. By working with professionals who have been through the transition process dozens or even hundreds of times before, you’ll greatly reduce your risk and increase your chances of a successful start to your new business.
Evaluate Technology Vendors
As an RIA, you won’t have access to the technology platform of a broker-dealer any longer. You’ll need to evaluate planning systems, performance reporting systems, DocuSign software, investment management portals, and the dozens of other sophisticated tools that modern financial advisors depend upon to deliver their services.
Find Marketing Support
If your practice is to last, you’ll need a consistent and well-oiled lead generation machine. Since much of your time will be spent attending to your clients and the needs of your business, it’s a good idea to identify marketing professionals you can work with to source new prospects and grow your business.
Select a Custodian
Under the custody rule of the Investment Advisers Act of 1940, RIAs cannot directly make transactions on behalf of their clients. Instead, they’ll need to appoint a custodian to do that for them. Custodians vary in size and purpose, so make sure you identify one with experience supporting the kind of practice you want to build.
Finalizing the Transition
Build a Client Outreach Plan
Working closely with the consultative professionals you’ve selected, establish and execute a client outreach plan. This could include scripts, contact strategies, messaging, and more—everything you need to explain to your clients what they can expect at your new business and why they should follow you.
Coordinate With Vendors
As you get closer to your go-live date, you’ll want to ensure that all of the vendors and partners you’re working with are in contact with one another, understand the plan, and know what their role is. Double check that your tech stack is working as intended, that your website is up and running, that your marketing campaigns are ready for launch, and so on.
Make the Switch
If you’re an employee at a broker-dealer, you’ll want to collaborate with your compliance professionals when submitting your resignation. If you’re an IBD-registered representative, you’ll simply need to inform your broker-dealer that you’ve decided to go fully independent and end your contract with them. With this last step, you’re ready to continue on your financial advisor journey as an RIA.