Exam Guide

What to Expect During a State RIA Examination

A complete walkthrough of the state examination process from initial notification through resolution.

The Examination Timeline

Understanding each phase helps you prepare effectively.

Notification

2–4 weeks before

You will receive a written notification letter from your state securities regulator informing you of the upcoming examination. The letter typically includes the examination scope, date range, and an initial document request list.

Respond promptly to acknowledge receipt
Begin assembling requested documents immediately
Designate a primary contact person for the examination

Document Preparation

1–2 weeks before

Prepare and organize all documents requested in the notification letter. Examiners expect organized, complete documentation. Missing or disorganized records are a significant red flag.

Create a master document index cross-referenced to the request list
Review all documents for completeness before submission
Prepare electronic copies in addition to physical files

On-Site Examination

2–5 days typically

Examiners will visit your office to review records, interview staff, and assess your compliance program. They will examine books and records, test transactions, and evaluate your written policies and procedures.

Provide a dedicated workspace for examiners
Ensure key personnel are available for interviews
Answer questions directly and honestly — do not volunteer unnecessary information

Exit Conference

Final day

At the conclusion of the on-site visit, examiners typically conduct an informal exit conference to discuss preliminary findings. This is not a formal determination but gives you an early indication of any issues.

Take detailed notes during the exit conference
Ask clarifying questions about any findings
Do not argue with examiners — note concerns for your formal response

Deficiency Letter & Response

30–90 days after

If deficiencies are found, you will receive a formal deficiency letter outlining findings and required corrective actions. You typically have 30 days to respond with a corrective action plan.

Address every finding in your written response
Provide evidence of corrective actions already taken
Implement all changes promptly and document the implementation

What Examiners Look For

State examiners typically focus on these key compliance areas.

Books and records maintenance and organization
Advertising and marketing material compliance
Code of ethics and personal trading oversight
Client suitability documentation
Fee billing accuracy and disclosure
Custody and safeguarding of client assets
Registration and licensing compliance
Business continuity and disaster recovery planning
Cybersecurity policies and procedures
Supervisory procedures and compliance program adequacy

Be exam-ready every day

Compliance Approved keeps your documentation organized and your compliance program up to date.