Scott Matasar Shares Legal Must-Knows for Launching an RIA at XYPN LIVE 2025
Scott Matasar presented “Look Before You Leap: Legal Must-Knows Before You Launch a Firm” at XYPN LIVE 2025, guiding advisors through the realities of leaving a broker-dealer or existing RIA to start a new, independent firm. Highlights included recent transition trends, key legal risks, and a step-by-step view of planning a compliant launch.
Key Takeaways
- Advisor movement is strong. A leading recruiting firm reported more than 9,600 advisors changed firms in 2023 and 2024. Matasar Jacobs supports 250–300 transition projects annually.
- Risk exists but is manageable. With sound planning, launching an RIA is low risk. Litigation incidence hovers around 2 percent, with higher exposure for advisors bound by stringent employee contracts, bank-channel advisors, closely-held RIAs, or advisors who disregard trusted legal advice.
- Know the three big barriers. Restrictions on retaining confidential information, limits on post-resignation interactions with clients, and constraints on recruiting former colleagues.
- Use a deliberate launch plan. Secure and review contracts, choose entity structure, prepare ADV filings, select custodians, and map operations and communications so account transitions proceed smoothly. Timing around compensation, client review cycles, and notice periods matters.
- Protect the new firm. Build fair operating and practice agreements, define ownership of client relationships, set compensation formulas, and include conflict-resolution mechanisms. Plan post-resignation outreach, documentation, and response to potential cease-and-desist claims to maximize client retention.
Scott’s message was clear: with preparation and the right guidance, advisors can launch successfully while honoring legal obligations to clients and prior firms.