Adding a new advisor to a small RIA: the operations checklist for the first 30 days
When a small RIA adds an advisor, the operations work falls into five parts: registration and disclosures (including a brochure supplement delivered to the advisor's clients), the code of ethics and an initial personal holdings report, system access limited to what the role needs, a written handover for any clients they take on, and a record of each step with its date. Most of it should be done before the advisor speaks to their first client.
Bringing on a second advisor is a big moment for a small firm. It's also when a lot of habits that worked for one person stop working. Records that lived in the founder's head now have to be visible to someone else, and a set of new obligations starts on the new person's first day.
What needs to happen before they advise anyone?
| Step | Record |
|---|---|
| Registration as an investment adviser representative where required | Filing date and confirmation |
| Brochure supplement prepared | Version and date |
| Code of ethics acknowledged | Signed acknowledgement with date |
| Initial personal holdings report | Date received and reviewed |
| Written procedures read | Acknowledgement with date |
| System access set up | Which systems, what level, granted by whom |
What about clients they take on?
- Deliver the brochure supplement to each client before the new advisor starts advising them, and log the delivery.
- Write a handover note per household: goals, strategy, open items, anything sensitive.
- Introduce them properly, by the existing advisor where possible.
- Update the household record with the new advisor and the date.
What should the first 30 days include?
- A walkthrough of how the firm handles billing, trading, IPS changes and records.
- Shadowing on a few client meetings before leading one.
- A review at day 30: access still right, reports in, nothing outstanding.
- First quarterly transaction report diary-dated.
A worked example
Take a hypothetical solo RIA adding an associate advisor. The owner completes the registration, prepares the associate's brochure supplement and collects the code of ethics acknowledgement and initial holdings report in the first week. The associate gets access to client records and the trade blotter but not billing setup. Twelve households move to the associate in month two; each gets the supplement first, logged, and a one-page handover note. At day 30 the owner checks the list and diary-dates the first quarterly report.
What are the common gaps?
- The brochure supplement delivered late, or not logged.
- Full access to everything on day one because it was quicker.
- No handover note, so the new advisor learns each client's history in the meeting.
- The initial holdings report forgotten until the first quarterly report.
When is this overkill?
It isn't, for anyone who will advise clients. For an administrative hire, the registration and supplement steps may not apply, but access, procedures and the code of ethics often still do.
How Advorra fits
Advorra keeps the brochure-delivery log, personal-securities log and procedures vault alongside client and household records, so the new advisor's supplement deliveries, reports and acknowledgements sit in the same place as the clients they serve. See the product page, or read about brochure supplements and personal securities reporting.
One thing to do this week: if you're hiring, turn this list into a dated checklist with one owner per step.
An operations checklist, not legal or compliance advice. Registration and disclosure requirements vary; your compliance consultant confirms what applies to your firm.
Questions advisors ask
Does a new advisor need to be registered?
Usually, yes. Investment adviser representatives generally need to be registered with the states where they work with clients. Check your state's rules and your compliance consultant before they start advising.
When does the brochure supplement go out?
For SEC-registered advisers, generally before or at the time the supervised person begins providing advice to a client. State rules are often similar.
What about personal trading reports?
A new access person generally files an initial holdings report within 10 days of becoming one, under the SEC's code of ethics rule. State rules may differ.
What access should they get?
Only what their role needs on day one. Add more later, and record each change.
Is this compliance advice?
No. It is an operations checklist. Your compliance consultant confirms the requirements for your firm.
See it on a demo firm
Advorra is practice software for independent RIAs: clients, models, IPS, billing and compliance records in one place, on top of the custodian you already use. Built by The CollabHub.
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