WEBINAR | Board of Directors Fiduciary Oversight and Education
So, You Want to Buy an RIA?
Objective: Expand the understanding of the challenges and opportunities when considering acquiring a Registered Investment Advisory Firm.
Many Financial Institutions are increasing expressing an interest in buying or forming a registered investment advisor (RIA). There are many good reasons why a financial institution may benefit from having an affiliated RIA. However, failure to consider the specific details can result in a myriad of otherwise avoidable problems.
As with all growth initiatives that are considered by a financial institution, the starting point is a combination of strategic planning and risk assessment. The strategic planning components are affected by whether the bank has a Trust Department and the strengths and weakness of that department or has a current non-deposit investment product (NDIP) program and the strengths and weaknesses of that program.
This program addresses:
- The buy or build question with a discussion of advantages and disadvantages of each.
- The Myths of RIAs! What you think you are getting and what you aren’t!
- Considerations in the referral destinations, resource sharing and the client experience.
- The questions of governance and oversight of an affiliated organization including to financial, regulatory and civil liability for the unique business activity of the RIA.
The need to conduct this program is situational. If your organization, like many, has as a strategic initiative non-organic growth, this program would be advised.
