RIA and TPA shared employees

[Guest cbclark]

I am wading into foreign waters here and not even sure if I have the issues framed correctly. A closely held TPA firm has investment advisors on staff. Due to various concerns, the TPA decides to create a separate investment advisory firm. Not too worried about the shared ownership (at least not today...) but concerned about shared employees, ie advisor in new RIA firm, also works for TPA and salary is paid by TPA. Can anyone point me in a direction to start resolving these questions? The best would be to find out there are no issues, but I believe that is wishful thinking. The IRS scares me enough, the SEC flat terrifies me....Thanks in advance.

[MSN]

The obvious answer is to seek legal counsel experienced in both employee benefits and securities law who can guide you. There are numerous considerations dependent on the business model that you're speaking of. What specific concerns do you have regarding shared employees? If you can narrow the focus I may be able to point you in the right direction. As you probably expect, the devil's in the details...

[Guest cbclark]

Thanks MSN. I had thrown this out on the boards to see if I could get any replies like yours to help bolster my position that indeed legal counsel was needed. Luckily I prevailed on that and the whole issue is now with a legal expert. Waiting to see what s/he says....

[K2retire]

Please share whatever you learn.

[Guest cbclark]

I will be glad to.