Knowledge and Insight > Manage Your Practice

Regulatory Considerations When Bringing On a New Advisor

Chris Stanley | ThinkAdvisor, August 2017

Summary: If you own an investment advisory business, growth is a good problem to have. It can become such a big problem, however, that you may consider hiring another you — another financial advisor to help serve your existing clients and prospect for new ones. There are many legal and compliance considerations to keep in mind when doing so, the most salient of which are described below.

Lastly, it’s also probably a good idea to get in touch with your business’ E&O insurance broker or carrier to ensure that the new advisor will be covered under your existing errors and omissions policy. Additional paperwork may be required, but it’s well worth it to prevent your business from incurring an uninsured liability caused by your new advisor.”