RIA Custodian Due Diligence Checklist - 10 Steps

Sep 12, 2026

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A structured 10-step checklist guiding an RIA firm through selecting a custodial services provider. The process covers defining non-negotiable requirements, building and refining a target provider list, setting a realistic timeline, and preparing a comprehensive RFP to address technology, trading features, operational support, and practice management. It further explains how to distribute the RFP, evaluate responses, run technology demos, review pricing proposals, and finalize selection and signing, including expectation management with vendors.

LanguageEnglish

CategoryForms

FormatPDF

Pages2

Reading Time1 min

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RIA Custodian Due Diligence Checklist

Identify Your Firm’s ‘Must-Haves’

Develop Preliminary List

Establish a Timeline

Narrow the List

Build an RFP

Distribute the RFP

Identify Best Fits

Demo the Technology

Evaluate Pricing Proposal

Select and Sign

RIA Custodian Due Diligence Checklist Before your firm begins the search for a new RIA Custodial Services Provider – consider including these 10 steps as apart ofyour firm’s process. 1 ✔Identify Your Firm’s ‘Must-Haves’ What are your firm’s deal breakers? Work with the full RIA team to identify all the traits the firm would benefit from in its next custodian. Who on your team will help determine what’s most important in your next custodian? Some items to consider are technology and trading features, operational support and practice management. Develop Preliminary List Put together a list of prospective RIA custodians. This list should include the big-name custodians as well as boutique providers – casting a wide net will help to find the right provider to fit an RIA’s unique needs. Establish a Timeline Selecting a new RIA custodian can drag on for a multitude of reasons. Tax season is coming up, vacations, moving offices, the list could go on and on. It’s important to establish a timeline that includes essential dates and time frames such as research, demos, client communications, and transition timelines. Don’t hesitate to share your timeline with prospective providers to manage expectations. Narrow the List Begin reviewing the list of providers using information available online. Eliminate any custodians that clearly will not meet the list of must-haves (i.e. if an RIA wants access to support over the phone but a provider only offers automated service solutions). Build an RFP An RIA custodian request for proposal (RFP) is a detailed list of questions that touch on all of the must-haves identified in step 1. The RFP can span from general info on the provider to specific questions about available account types and pricing. 6 Distribute the RFP RIAs should then share the RFP with the narrowed down list of providers. The providers will respond to each question and share those responses back with the RIA for review. This will help to identify all the points that the RIA couldn’t find online. Identify Best Fits Based on the RFP responses, the RIA should identify any providers that hit all (or most) of the must-haves decided on in step 1. These providers could be the right fit for the RIA and are worth exploring more. Demo the Technology If a provider checks the right boxes on paper, it’s time for the RIA to take a demo of their technology. Explore the capabilities, discuss integration options, and dive into the provider’s approach to service. The demo is an opportunity to learn about technology as well as the provider’s culture and approach to advisor relationships. Evaluate Pricing Proposal After the demo, any providers that could be the right fit should provide the RIA with a pricing proposal detailing how the custodian would charge the firm. That pricing proposal could be a one-size-fits-all rate sheet, or a more customized approach designed to fit the firm’s unique needs. 10 Select and Sign The last step for an RIA is choosing the custodial services provider. The team should have all the information they need to move forward with a provider that is in the best position support their business and help them grow. Need help putting together your RFP? Download TradePMR’s Free RFP Template 012023 © 2023 Trade-PMR, Inc. For Institutional Use Only. Securities are offered

FAQs

What should an RIA firm define before starting vendor outreach?

Identify the firm’s “must-haves” and deal breakers for the next custodian, including technology and trading features, operational support, and practice management. Assign team members who will determine what matters most.

What is the purpose of building an RFP in this checklist?

The RFP is a detailed question list that covers all must-haves identified in Step 1. It can include provider background and specific questions about account types and pricing.

What are the key steps after receiving RFP responses?

The RIA identifies best fits based on which providers meet most must-haves, then demos the technology to explore capabilities and integration options. After the demo, the RIA evaluates pricing proposals and selects and signs the provider that best supports the business and growth.

Sep 12, 2026

Upload by Dozel