What Records Must An RIA Keep?
A Practical Guide to SEC Books and Records Requirements
If you're a Registered Investment Adviser (RIA), maintaining accurate books and records isn't just good business practice,it's a regulatory requirement. During an SEC or state examination, one of the first things examiners will review is whether your firm has maintained the required records under the Investment Advisers Act of 1940.
Failure to maintain required records can result in examination deficiencies, enforcement actions, and unnecessary stress during an exam. Fortunately, a well-organized recordkeeping process can significantly reduce compliance risk.
This guide outlines the records every RIA should maintain and provides practical tips for staying organized year-round.
Why Books and Records Matter
The SEC requires RIAs to maintain records that demonstrate compliance with the Advisers Act and support the firm's fiduciary obligations. Good recordkeeping helps your firm:
Demonstrate compliance during regulatory examinations
Support disclosures made in Form ADV
Document investment decisions and client communications
Maintain evidence of compliance testing and supervision
Reduce operational and regulatory risk
Remember, if an action isn't documented, regulators may assume it didn't happen.
Common Records Every RIA Should Maintain
While every firm's recordkeeping obligations differ depending on its business model, most RIAs should maintain the following:
Client Records
Advisory agreements
Client account information
Investment policy statements
Client communications
Financial plans
Performance reports
Fee calculations
Trading Records
Trade blotters
Order memoranda
Allocation documentation
Best execution reviews
Trade error documentation
Compliance Records
Your compliance files should include documentation such as:
Written policies and procedures
Code of Ethics
Business Continuity Plan
Annual compliance review documentation
Compliance testing results
Employee certifications
Personal securities transaction reports
Employee training records
Marketing Records
Since the adoption of the SEC Marketing Rule, firms should retain documentation supporting:
Advertisements
Website content
Social media posts
Performance calculations
Testimonials and endorsements
Required disclosures
Substantiation for material statements of fact
Maintaining these records is critical if the SEC asks how a particular advertisement was created or supported.
Form ADV Documentation
Keep copies of:
Current and historical Form ADV filings
Documentation supporting material amendments
Documentation supporting RAUM calculations
Client brochure delivery records
How Long Must RIAs Keep Records?
Most required books and records must be maintained for at least five years, with certain records required to be kept in an easily accessible location for the first two years. Some records may have longer retention requirements depending on applicable state rules or your firm's business activities.
Your firm's written record retention policy should clearly identify:
What records are maintained
Where they are stored
Who is responsible for maintaining them
Applicable retention periods
Procedures for secure disposal
Common Recordkeeping Mistakes
During examinations, regulators frequently identify issues such as:
Missing documentation supporting annual compliance reviews
Incomplete marketing records
Inconsistent information between Form ADV and firm records
Failure to retain required email communications
Missing personal trading documentation
Outdated compliance manuals that don't reflect current business practices
These deficiencies are often preventable through regular compliance reviews and ongoing monitoring.
Best Practices for RIAs
Consider implementing these practices to strengthen your compliance program:
Maintain a written records retention policy.
Use a centralized electronic filing system.
Conduct periodic internal file reviews.
Review Form ADV against firm documentation annually.
Retain documentation supporting compliance testing.
Maintain an annual compliance calendar to track recurring obligations.
How RIA Compliance Desk Can Help
Maintaining books and records doesn't have to be overwhelming.
RIA Compliance Desk provides practical compliance support for investment advisers, including guidance on recordkeeping requirements, annual compliance reviews, Form ADV reviews, compliance templates, and answers to your day-to-day compliance questions.
Whether you're building a compliance program from the ground up or preparing for your next SEC or state examination, we're here to help you stay organized and compliant.
Need Help Strengthening Your Compliance Program?
If you have questions about your firm's books and records, compliance documentation, or annual review process, explore our membership for ongoing compliance guidance or learn more about our flat-fee document review and annual compliance review services.
