How ACA Helped a Growing Advisory Group Launch an Independent RIA

Client Background

A growing investment advisory group engaged ACA to support their strategic move to break away and separate their advisory business from their current corporate partner. This group’s goal was to establish a fully independent Registered Investment Adviser (RIA). While the group intended to maintain their existing broker-dealer relationship, they anticipated that the transition to an independent RIA would be time-intensive due to the number of advisors and client accounts involved.

Challenge

As the group began the transition planning process, it quickly became clear that the separation would be far more complex than they initially expected. The firm faced:

• Significant operational demands, including unwinding shared processes and building new systems from the ground up
• Regulatory complexity, particularly around ensuring seamless continuity between their newly formed RIA and their anticipated ongoing broker-dealer activities
• High execution risk, given the volume of clients and advisors involved
• Increased stress and uncertainty, as the group navigated unfamiliar regulatory requirements and tight timelines

Without specialized guidance, the breakaway process risked becoming inefficient, disruptive, and potentially noncompliant.

ACA’s Approach

ACA partnered closely with this group to provide the expertise, structure, and hands-on support needed for a smooth transition. Most importantly, ACA provided the group with much-needed relief of knowing they were working with experts who’ve helped hundreds of firms navigate the formation of independent RIAs. Our approach included:

1. Strategic Breakaway Guidance

ACA offered practical, real-world examples from advisory firms we have successfully guided through similar “breakaway” transitions. These examples helped the team understand what to expect and make informed decisions that aligned with both regulatory requirements and long-term business goals.

2. A Clear, Actionable Roadmap

We developed a comprehensive transition roadmap designed to:

• Streamline workflows
• Reduce operational friction
• Maintain regulatory integrity
• Minimize disruption to advisors and clients

This roadmap ensured all stakeholders were aligned and able to move through the separation with confidence.

3. Outsourced Chief Compliance Officer (OCCO) Support

Under ACA’s U.S. Regulatory (US Reg) team, ACA took the role of Outsourced Chief Compliance Officer (OCCO) for this group’s new RIA. This included full ownership of ongoing compliance responsibilities such as:

• Regulatory filings
• Annual reviews
• Policies and procedures
• Ongoing compliance oversight and advisory support

4. Technology-Enabled Compliance Collaboration

To enhance communication and streamline compliance operations, ACA provided robust technology support across four key modules. These tools facilitated collaboration among the OCCO, ACA’s internal team, and the RIA’s internal stakeholders, ensuring transparency, efficiency, and consistency across all compliance activities.