US RIA license

one、RIA license overview

1. basic definition

US RIA license(Registered Investment Advisor)by the U.S. Securities and Exchange Commission(SEC)or an investment adviser license issued by a state regulatory agency，Allow licensed institutions or individuals to provide professional investment consulting and asset management services。

2. regulatory agency

• SEC：RIAs with more than $100 million in assets under management or advising investment firms
• state securities regulator：RIAs with less than $100 million in assets under management

3. Legal basis

Under the Investment Advisers Act of 1940，Any institution or individual that provides investment advice to U.S. clients for a fee must register as an RIA。

two、RIA license core value

three、Application eligibility requirements

1. Subject qualification

• The company must be registered in the United States
• No nationality restrictions，Overseas institutions can also apply
• The company and directors must have good credit records

2. Personnel qualifications

• At least one licensed consultant who has passed the Series 65/66 exam
• Executives must have no criminal record

3. capital requirements

• No minimum capital requirements(However, it is necessary to prove the ability to continue operating)
• Professional liability insurance required

Four、Detailed explanation of application process

1. registerAmerican Corporation
   • No special restrictions on company name
   • Registered capital is usually US$50,000(No capital verification required)
   • The processing time is about 20-25 working days
2. exam preparation
   • Pass the Series 65 exam(72%Correct rate)
   • or Series 66 exam(Need to pass Series first 7)
3. System registration
   • Create an account in the IAPD system
   • Complete the 73-page ADV form(It takes about 9 hours)
4. Material submission
   • Complete the application form
   • Submit a complete set of application documents
5. SEC audit
   • The average approval time is 45 working days
   • Additional materials may be required

five、List of required materials for application

1. Letter of authorization for license application
2. Company registration certificate
3. Articles of Association
4. Copy of director’s passport
5. Company business description report
6. Compliance documents(Including AML policy, etc.)
7. System reporting documents
8. Complete application form
9. SEC Questionnaire Responses
10. Agent's Statement

six、Obligations of licensed institutions

1. Continuous Compliance
   • Submit regular Form ADV updates to the SEC
   • Submit annual compliance report annually
2. Information disclosure
   • Full disclosure of conflicts of interest
   • Transparent and public charging standards
3. Client money management
   • Client assets must be kept by qualified custodians
   • Each investment requires customer confirmation
4. record keeping
   • Keep records of all transactions for at least 5 years
   • Keep records of customer communications

seven、Industry status

Statistics as of 2018：

• RIA institutions registered with the SEC：12,578Home
• Assets under management：82.5trillion dollars
• State Registered RIA Median Size Under Administration：3,000million dollars

Well-known licensed institutions include：

• Jiasheng Group
• Tiger Brokers
• Interactive Brokers
• Coinbase
• TokenClub

eight、Professional advice

1. Compliance first：Ensure all application materials are true and complete
2. Professional assistance：Consider hiring a compliance consultant to guide your application
3. continuing education：Stay current on SEC regulations
4. System construction：Establish compliance and risk control systems in advance

The RIA license is for the U.S. investment consulting industry”Admission ticket”，The application process is complex but highly standardized。After successfully obtaining the license，Institutions will obtain legal qualifications to provide professional investment services in the U.S. and global markets。