In the complex world of financial services, compliance is not just a regulatory requirement—it's a cornerstone of trust and professional integrity.
For financial planning and Registered Investment Advisor (RIA) firms, navigating the intricate web of regulations is crucial for both legal operation and maintaining client confidence.
This guide aims to provide a comprehensive overview of compliance requirements and best practices for financial planning and RIA firms.
By understanding and implementing robust compliance measures, your firm can not only avoid regulatory pitfalls but also leverage compliance as a competitive advantage.
Compliance in financial services serves several critical functions:
Financial planning and RIA firms must navigate regulations from various authorities.
The primary regulatory bodies include:
Regulatory Body | Primary Jurisdiction | Key Areas of Oversight |
---|---|---|
Securities and Exchange Commission (SEC) | Federal | RIAs with over $110 million in assets under management (AUM) |
State Securities Regulators | State | RIAs with less than $110 million in AUM |
Financial Industry Regulatory Authority (FINRA) | Self-regulatory organization | Broker-dealers and registered representatives |
Department of Labor (DOL) | Federal | Retirement accounts and ERISA plans |
Commodity Futures Trading Commission (CFTC) | Federal | Commodity and futures markets |
Understanding which regulatory bodies have jurisdiction over your firm is the first step in ensuring comprehensive compliance.