We intimately understand a Registered Investment Advisor’s (RIA) business, and not just from a financial reporting perspective. We understand an RIA’s business as a whole, its clients, revenue cycles, product lines, compliance challenges and related entities—whether that includes an affiliate broker/dealer, trust company or fund sponsorship (private investment partnership or public mutual funds).

We use a focused approach that relies on the latest in technology and staff training to ensure that we remain sensitive to budgetary concerns and to the company’s internal control structure.

RIA Services

• Audit and financial statement preparation services
• Preparation or review of federal, state, and local income tax returns and Form K-1s
• Consultation related to complex securities and derivative investments, various corporate actions, foreign investments and trader vs. investor status
• Consultation regarding U.S. tax withholding and related filings
• Consultation related to onshore and offshore fund structuring, effectively connected income, ERISA and UBTI
• Tax preparation and planning related to fund general partners/managing members and advisors
• Tax services for individuals
• Surprise custody exams
• GIPS® compliance

Our investment industry experts also benefit from the innovative and proven business and tax planning ideas of the more than 200 tax professionals at Cohen & Company, Ltd., our affiliated firm. Cohen & Company specializes in international tax services, state and local credits and incentives, employee benefits, estate and gift planning, and a variety of other areas.

Tax services for individuals
RIAs deal with complicated tax matters in the course of business, which ultimately affect their personal tax situation as well. Our team works with RIAs on their business tax issues and then leverages that knowledge to provide insightful ideas for owners’ personal tax matters. We assist with:

• Individual federal and state income tax compliance
• Family Limited Partnership, trust, and gift and estate tax planning and compliance
• Industry-specialized income tax preparation related to active traders and owners of investment advisors or broker/dealers

Surprise custody exams
Certain investment advisors registered with the SEC and deemed to have custody of client assets are required to engage a CPA firm, registered with and subject to regular inspection by the PCAOB, for the purpose of conducting an annual surprise custody exam.

As the exam process has evolved since the SEC’s ruling in 2010, many RIAs have realized the advisory process begins with determining who falls under the scope of the custody rules. Part of our work with clients has been to determine if an exam is even necessary. Surprisingly, many RIAs that believe they are subject to the rules, in fact, are not.

For those that do require an exam, our firm can perform the audit efficiently, cost-effectively and with minimal disruption to your operations. As a PCAOB registered firm, subject to regular inspection, and focused exclusively on the investment industry, Cohen Fund Audit Services has been performing custody exams for more than five years. We have performed approximately 20 exams or custody-related internal control reports as a result of the custody rule amendments. We also stay current on continuing developments with the SEC rules and have consulted with the SEC on a number of occasions for interpretations and advisor-specific issues.

GIPS®
The overwhelming majority of investment management firms are now Global Investment Performance Standards (GIPS®) compliant. Our firm’s GIPS® team focuses on ensuring our clients remain compliant in this area.

We combine expertise, individualized attention and cost-effective pricing to provide our clients with the level of service they deserve. Currently, Cohen Fund Audit Services and its staff are engaged to provide GIPS® verification and performance examination services for investment advisors as well as accounting services for more than 75+ mutual fund families with total assets of approximately $28 billion.

Our GIPS® services include:

• Pre-verification and compliance consulting
  Assistance with composite membership guidelines and development of internal processes and procedures
• GIPS® verifications, including verification statement
• Performance examinations of specified composites