How to Register an RIA Firm in Florida

One of the most important questions to consider when starting an RIA firm is where to register. Larger firms must register with the Securities and Exchange Commission (SEC), but smaller firms may register with their state instead. If you’re interested in setting up shop in the Sunshine State, it’s helpful to know what Florida RIA registration entails.

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Florida RIA Registration Requirements

State registration is optional for some RIAs. But for others, it’s mandatory. Generally, you’re required to register your RIA in Florida if you:

Have less than $100 million in assets under management (AUM)
Are located in Florida and serve more than five clients in the state
Actively solicit clients in the state

These guidelines are laid down by the Florida Office of Financial Regulation (OFR). Beyond those requirements, here’s what else you need to check off to complete your registration.

Professional Certifications

Florida RIAs must hold a securities license. Under state law, you’re permitted to register if you hold one of the following:

Series 65 license
Series 7 and Series 66 license

While most states also require the Series 63 license for registration, Florida does not.

If you don’t hold a Series 65, Series 7 or Series 66 license, you may still be able to register your RIA in Florida if you have other credentials. State regulators accept any of the following designations in place of a securities license:

Certified Financial Planner™ (CFP®)
Chartered financial analyst (CFA)
Chartered investment counselor (CIC)
Chartered financial consultant (ChFC)
Personal financial specialist (PFS)

Florida statutes don’t specify any degrees or educational background that an RIA must have as a prerequisite to register.

IARD Registration

Florida registers RIAs through the Investment Advisor Registration Depository (IARD) system, which is maintained by FINRA. You’ll need to submit a New Organization Super Account Administrator Agreement through the IARD website to create your account.

Once your account is set up, you’ll deposit money to your Flex-Funding account. This is the account you’ll use to pay your RIA registration fees. Here’s how Florida’s RIA registration fees add up:

Fees are paid through IARD.

Form ADV

Florida-registered RIAs must complete Form ADV Parts 1 and 2.

Form ADV Part 1 includes details about your business and how your firm operates.
Form ADV Part 2 is the brochure that you’ll furnish to prospective clients.

Form ADV can be submitted online through IARD. Florida law requires that your brochure be written in plain English so that it can be easily understood by prospects who read it.

Form U4

Form U4 (Uniform Application for Securities Industry Registration or Transfer) is required for each investment advisor representative the firm employs. This form includes details about each individual’s employment history, financial activities and disciplinary history.

This form is also submitted through IARD.

Business Formation Documents

You’ll need to create your business on paper and file the required business formation documents. In Florida, you can set up a business as a corporation, limited liability company (LLC) or partnership through the Department of State.

No special paperwork is required to start a sole proprietorship in Florida. However, it’s generally not advisable to start an RIA firm this way, as other business structures offer greater legal protections and tax benefits.

Client Advisory Contract

Florida law requires registered RIAs to draft a client advisory contract. This contract is a written document that outlines the relationship between you and the clients you advise.

Ongoing Requirements

Once you’re registered as an RIA in Florida, you’ll need to meet annual requirements to maintain your registration. The requirements include:

Submitting an updated Form ADV within 90 days of the end of your firm’s fiscal year
Filing financial statements annually through the Florida Office of Financial Regulation (statements must be prepared following generally accepted accounting principles)
Renewing registration annually through the Office of Financial Regulation
Maintaining accurate records of all client communications and transactions
Meeting all necessary compliance requirements, including having a written compliance policy and code of ethics

You’ll also need to meet net capital requirements. Net capital represents your assets minus your liabilities, following GAAP rules. Florida law specifies that:

RIAs that do not have custody of client funds must maintain a minimum net capital of $2,500.
Firms that require payment of advisory fees six months or more in advance, in excess of $500 per client, or who have custody of client funds or securities, must maintain net capital of $25,000.

State law allows exemptions from the $25,000 threshold for investment advisors meeting specific requirements.

The Florida Office of Financial Regulation Securities Division is where you can find updated registration requirements, along with answers to frequently asked questions about how to register.

Frequently Asked Questions (FAQs)

Do You Need a License to Be a Financial Advisor in Florida?

Florida doesn’t require a securities license to be a financial advisor or register as an investment advisor. Having a Series 65, Series 7 or Series 66 license could give you a competitive edge, but you could still register a Florida RIA without them if you hold other professional designations.

How to Start an RIA in Florida?

If you’d like to start an RIA in Florida, you’ll first need to determine if you’re eligible to do so. Eligibility to register an RIA is based on your professional credentials and AUM. If you meet Florida RIA requirements, the next step is setting up an IARD account and completing Forms ADV and Form U4.

Does Florida Require RIA Registration?

You can’t market yourself as an RIA in Florida without a valid registration. The Office of Financial Regulation specifies that, “Any person who for compensation refers, solicits, offers, or negotiates for the purchase or sale of investment advisory services is required to be registered in Florida, regardless of their professional designation.”

Bottom Line

An advisor registers their RIA through the Investment Advisor Registration Depository (IARD) system.

Florida RIA registration requirements parallel SEC registration requirements in many ways. If you have the ability to register at the state level or with the SEC, based on your AUM, you may want to weigh the pros and cons of each one before making a final decision.

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If you plan to operate your RIA in multiple states you’ll need to complete registration requirements for each state. Generally, state registration is required when you maintain a physical office in a specific state or have a minimum number of clients in that state.