Legal Question in Business Law in New York

Interstate Financial Planning Business Venture

I am a financial planner in New York and am planning a small business venture whereby people all over the country (I already have distributors lined up) fill out questionnaires and send them to me with a check or money order for $15. In return, based on the information provided to me in the questionnaire, I provide each person with a complete comprehensive analysis focusing mainly on retirement planning and, specifically, how a Roth IRA may or may not fit into their financial plan.

Since this is an interstate activity, giving financial planning advice through the mail, are there any legal pitfalls I need to watch out for? Is there anything I need to take care of before I launch this endeavor?


Asked on 3/03/98, 10:23 am

1 Answer from Attorneys
Mark Astarita Beam & Astarita, LLC

Financial Planning

Sounds like you may fall into the definition of an investment advisor. If you do, there are registration requirements in every state in which you work, and where your clients reside. Every state also has exemptions, in part based on the number of clients in the state, but it is something that you should look at.

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Answered on 3/05/98, 12:00 pm


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