Texting clients at a small RIA: what to allow, what to keep, and what never goes by text
A small RIA should decide in writing which messaging channels staff may use with clients, use only channels whose messages the firm can keep, never accept trade or money instructions by text without confirming them, and move anything important onto the client's record. Clients will text whether you plan for it or not, so a short written rule is better than an unwritten habit.
A client texts the advisor's personal number on a Saturday: "Can you move $20k to my checking on Monday?" The advisor replies "Sure" from the school car park. On Monday it's done. The request, the reply and the decision exist only on one phone. If the phone is replaced, or the client later says that isn't what they asked for, there's nothing to show.
What should the written rule say?
| Rule | Why |
|---|---|
| Which channels are approved | Only ones whose messages the firm can keep |
| Personal numbers and apps aren't used for client business | Messages there are hard to keep and easy to lose |
| No instruction is acted on from a text alone | Money and trade requests are confirmed through the normal process |
| Important conversations are noted on the client's record | The record shows what was asked and decided |
| What to do when a client texts a personal number | Reply once, move the conversation to an approved channel |
What never goes by text?
- Account numbers, Social Security numbers and other sensitive details.
- Instructions to move money, acted on without a callback.
- Advice that needs context or a record, such as a strategy change.
A worked example
Take the Saturday text above at a hypothetical two-person RIA that has written its rule. The advisor replies from the firm's approved messaging app: "Thanks, I'll call you Monday morning to confirm." On Monday the assistant calls the number on file, confirms the amount and destination, processes the request and notes the call and the original text on the household. The client hardly notices the difference; the firm now has a record.
What are the common gaps?
- Client conversations on personal phones.
- No written rule, so every advisor does it differently.
- Money requests acted on straight from a text.
- Important texts never noted anywhere else.
When is this overkill?
If the firm never uses text with clients, write that down and tell clients how to reach you. Most firms will find clients text anyway.
How Advorra fits
Advorra keeps communications and tasks on each client's household, so a note of an important text, the callback and the request it led to sit on the client's record. It doesn't capture text messages itself; an approved messaging tool does that. See the product page, or read about which client emails to keep and verifying client money instructions.
One thing to do this week: ask everyone at the firm whether clients text them, and on which number.
An operations guide, not legal or compliance advice.
Questions advisors ask
Can advisors text clients?
Many firms allow it through approved channels that keep the messages. Business communications about advice and recommendations generally need to be kept, so check your obligations with your compliance consultant.
What about personal phones?
Texts on personal phones are hard to keep and easy to lose. Many firms provide an approved app or number instead.
Can a client give a trade instruction by text?
Treat it as a request, not an instruction: confirm by phone or through your normal process before acting, especially for money movements.
What should go on the client's record?
A short note of any text conversation that matters: a request, a decision, a change of circumstances.
Is this compliance advice?
No. It is an operations guide. Your compliance consultant decides your firm's policy.
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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