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CNBC enlisted data provider AccuPoint Solutions to help with the rating of registered investment advisors for this yr’s FA 100 list.
The methodology consisted of first analyzing quite a lot of core data points from AccuPoint Solutions’ proprietary database of registered investment advisors. This evaluation began with an initial list of 39,818 RIA firms from the Securities and Exchange Commission regulatory database. Through a process, the list was eventually cut to 904 RIAs, with those firms meeting CNBC’s proprietary criteria.
CNBC staff sent an intensive email survey to all those firms that met the initial criteria to assemble more details. In turn, those advisory firms wishing to be ranked filled out the great application in regard to their practice. The CNBC team verified that data with those firms and with the SEC regulatory database. AccuPoint once more applied CNBC’s proprietary weighted categories to further refine and rank the firms, ultimately creating the list of the highest 100.
CNBC doesn’t charge any variety of fee to advisors to be listed within the annual rating.
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The first data points utilized in the evaluation were reviewed, either at the least baseline or inside a variety, eliminating those firms that didn’t meet CNBC’s requirements. Once the initial list was compiled, weightings were also applied accordingly. These data points included:
- Advisory firm’s regulatory/compliance record (editor’s note: Any firm that had a disclosure on its SEC ADV was routinely disqualified from the rating)
- Variety of years within the business
- Variety of certified financial planners
- Variety of employees
- Variety of investment advisors registered with the firm
- The ratio of investment advisors to total variety of employees
- Total assets under management
- Percentage of discretionary assets under management
- Total accounts under management
- Variety of states where the RIA is registered
- Country of domicile.