Registered Investment Advisors (RIAs) and wealth management firms operate under strict fiduciary obligations enforced by the Securities and Exchange Commission (SEC) and state securities regulators. When onboarding high-net-worth investors or retail clients, advisory firms must collect executed Investment Advisory Agreements, investment policy statements, and written acknowledgments confirming receipt of the firm's Form ADV Part 2A disclosure brochure before placing client capital into market investments.
Non-Negotiable Components of an RIA Onboarding Packet
A compliant wealth management onboarding package must clearly incorporate:
- The Fiduciary Investment Advisory Agreement: Explicitly establishing the advisor's fiduciary duty to act solely in the client's best interest, defining whether the account is discretionary (allowing trading without prior trade confirmation) or non-discretionary.
- Fee Schedules and Calculation Methods: Transparent breakdown of the annualized Assets Under Management (AUM) fee percentage, quarterly billing mechanics, and custodian fee disclaimers.
- Form ADV Part 2A and 2B Delivery Acknowledgment: Verifiable, signed proof that the client received the firm's regulatory brochure and advisor brochure supplements prior to or at the time of signing.
- Risk Tolerance and Objective Profiling: Signed documentation certifying the client's investment objectives (growth, income, capital preservation), liquidity needs, and time horizon.
Paperless Onboarding Routine
- Assemble the Complete Regulatory Packet: Bundle the advisory contract, ADV receipt, and privacy policy into a unified digital document.
- Execute via E-Signature: Send the package to the client's secure email. Both spouses sign their respective fields if opening a joint brokerage account.
- Permanent SEC Compliance Archival: Archive the timestamped, signed agreement alongside the custodial account opening forms for regulatory examinations.
Documenting Fiduciary Client Best-Interest Standards
Under SEC Regulation Best Interest (Reg BI) and fiduciary advisory rules, wealth managers must demonstrate that investment recommendations align precisely with client financial goals. Maintaining signed advisory agreements, Form ADV delivery receipts, and verified investor risk tolerance profiles in centralized compliance archives ensures seamless regulatory audits.
Wealth management practices can use Undersign to manage client advisory agreements and regulatory delivery receipts, ensuring complete compliance without paperwork delays.