Navigating the Regulatory Affairs Journey: Key Insights from our Webinar

Welcome to a recap of our recent webinar, where we embarked on an insightful journey: navigating the regulatory affairs (RA) landscape. Our host, Julia Guarno, expertly guided us through the session and gave useful advice to participants, such as how to submit queries and access presentation resources. The webinar’s key speaker was Ann Hauerland, Vice President of Regulatory Affairs, an industry veteran with in-depth expertise in the regulatory realm.

Kick-starting the Registered Investment Adviser Journey

Ann’s opening remarks focused on the critical concepts one needs to consider while initiating their registered investment adviser (RIA) journey. She underscored the vital role of an entrepreneurial spirit, effective marketing tactics, and the selection of a competent team. Key regulatory particulars, including the decision between state or SEC registration, based on assets under management, were emphasized.

A crucial aspect discussed was the intricacies of operating as a hybrid RIA and the importance of choosing the right entity type. Significantly, Ann emphasized the commitment required to fiduciary duties, particularly the duty of care and duty of loyalty. She rightfully stressed the criticality of the careful selection of a Chief Compliance Officer, which requires strong leadership and an in-depth understanding of regulatory mandates.

The Registration Process and Compliance

A large part of the discussion centred around the registration process which involves submitting a suite of documents to regulators, these include: Form ADV, Form CRS, advisory contracts, policies and procedures manual, and a code of ethics — illustrating the importance of thorough record-keeping.

Highlighting the centrality of compliance, Ann stressed the need for cohesive alignment across documents and policies and robust compliance practices. She also discussed the necessity of accurate record maintenance for investment adviser representatives (IARs). The import of determining portfolio management styles and qualifications for IARs was also emphasized.

The Role of Consultants and Technology

As the session progressed, Ann highlighted the value of external consultancy, especially for nascent RIAs. These experts can aid in navigating the intricate compliance requirements, staying abreast with regulatory changes, refining policies and procedures, conducting annual compliance reviews, fortifying cybersecurity defences, and providing guidance on effective advertising and marketing.

A point of note is the significance of compliance in advertising and marketing activities—a critical area often overlooked. Ann discussed the necessity for third-party vendors to conduct thorough due diligence. Furthermore, consultants can aid in understanding and maintaining compliance obligations, and navigating state and local regulations, and developing scalable compliance practices.

Ann also discussed the merits of tech investment pre-registration. Automation and technological platforms can streamline compliance tasks, a key aspect for every RIA firm. Healthy professional relationships with networks, custodians, and tech-stack elements are vital for ongoing support.

Maintaining Momentum Post-Registration

Once the initial setup is complete, it’s crucial to pursue ongoing education, business development, and marketing efforts. Ann encouraged advisors to seek advice from peers and industry experts, shedding light on the advantages of running an RIA and the value of independence.