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Duration: 4:19

Instructor:

Contributor: Interactive Brokers

Level: Beginner

Did you know that Interactive Brokers offers a wealth of information concerning RIA compliance right on the IBKR web site? Starting and registering your own advisory firm offers many benefits, including independence and the ability to control the advisory services your clients receive. But this increased freedom and control come with additional responsibilities, including making sure you comply with applicable state and federal rules.

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Study Notes:

Did you know that Interactive Brokers offers a wealth of information concerning RIA compliance right on the IBKR web site?

Starting and registering your own advisory firm offers many benefits, including independence and the ability to control the advisory services your clients receive. But this increased freedom and control come with additional responsibilities, including making sure you comply with applicable state and federal rules.

To assist you with registration and compliance obligations, you can find helpful information concerning compliance by selecting the Start Here button and clicking Registered Investment Advisor under Institutional Accounts.

Select the Additional Benefits & Resources icon, then Compliance Resources.

Here you’ll see information on:

Greenwich Compliance, which is an affiliate who offers resources and services to help advisors with issues ranging from registration to day-to-day compliance and can help advisors of all stripes, from established advisors to those just starting their own firms.

And the RIA Compliance Center where you can find a webinar, links to documents concerning advisory compliance obligations, and even submit questions.  Let’s take a look.

You’ll see a series of icons at the top which will take you directly to the topic shown.

If I click on the webinar’s icon, you’ll see a link to a webinar that provides an overview of the basic compliance rules facing new registered investment advisors, including registration rules, internal procedures that advisors need to adopt and documents they need to maintain.

If you scroll down a bit, you’ll see a Spotlight Series of PDF documents covering major topics affecting investment advisors, such as:

  • Forming Your Advisor Firm
  • Fee Agreements
  • Recordkeeping Obligations
  • State Registration Requirements for “Small” Investment Advisors, and more

Next, you’ll find links to regulatory websites to help you find information about their regulatory and compliance obligations. We have included links to the websites maintained by the SEC, state regulators, NASAA (the leading regulator membership association).

Below that, Interactive Brokers has reached preferred provider agreements with a variety of companies that offer RIA compliance and other services to advisory firms. These third-party service providers may be helpful with compliance and other related needs.

Many of these service providers have agreed to offer discounts to investment advisors trading on the Interactive Brokers platform. These discounts are generally listed below, next to the provider’s name.

Next, you’ll see information about IBKR’s due diligence.  Your clients, administrators, auditors and/or regulators may ask about Interactive Brokers’ record as a custodian and broker and ask you what due diligence you have done? Or you may be wondering about IBKR’s record and doing due diligence yourself?

To help you answer these questions, Interactive Brokers’ General Counsel has prepared a memo detailing Interactive Brokers’ strong financial position, close regulatory oversight, experienced management, worldwide best execution and low cost that you can provide to regulators, clients, auditors, administrators or other third parties.

Investment advisors have a “best execution” duty to their clients. Generally speaking, the advisor must execute client trades through a broker that, all things considered, gets their clients a favorable deal on each trade. The advisor should take into account the broker’s execution quality, commissions and fees and the quality of the brokerage services provided.  Here’s where you can find information on IBKR’s best execution advantage.

And finally – here are some free compliance software tools, and more information about our affiliate Greenwich Compliance.

RIA Compliance Center

Disclosure: Interactive Brokers

The analysis in this material is provided for information only and is not and should not be construed as an offer to sell or the solicitation of an offer to buy any security. To the extent that this material discusses general market activity, industry or sector trends or other broad-based economic or political conditions, it should not be construed as research or investment advice. To the extent that it includes references to specific securities, commodities, currencies, or other instruments, those references do not constitute a recommendation by IBKR to buy, sell or hold such investments. This material does not and is not intended to take into account the particular financial conditions, investment objectives or requirements of individual customers. Before acting on this material, you should consider whether it is suitable for your particular circumstances and, as necessary, seek professional advice.

Supporting documentation for any claims and statistical information will be provided upon request.

Any stock, options or futures symbols displayed are for illustrative purposes only and are not intended to portray recommendations.

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