Registered Investment Adviser (RIA)
A Registered Investment Adviser (RIA) is a U.S. financial firm that is an investment adviser, registered as such with the Securities and Exchange Commission (SEC) or a state's securities agency.
- Example(s):
- The Vanguard Group.
- Blackrock RIA.
- ,...
- See: Investment Adviser, Investment Advisor Representative (IAR), Fiduciary, Broker-Dealers, Broker-Dealer.
References
2023
- (Wikipedia, 2023) ⇒ https://en.wikipedia.org/wiki/Registered_investment_adviser Retrieved:2023-8-14.
- A registered investment adviser (RIA) is a firm that is an investment adviser in the United States, registered as such with the Securities and Exchange Commission (SEC) or a state's securities agency. The numerous references to RIAs within the Investment Advisers Act of 1940 popularized the term, which is closely associated with the term investment adviser. An investment adviser is defined by the Securities and Exchange Commission as an individual or a firm that is in the business of giving advice about securities. However, an RIA is the actual firm, while the employees of the firm are called Investment Adviser Representatives (IARs).
Registered investment adviser firms receive compensation in the form of fees for providing financial advice and investment management. They are required to act as a fiduciary. This is very different from broker-dealers and their representatives, who provide recommendations for a commission. Broker-dealers and their representatives are not required to act as a fiduciary, they simply must make suitable recommendations for a client. This is a different standard of care, but most consumers are unaware of the difference, as any of these professionals may call themselves a financial advisor.
In some instances a firm may be "dual registered", meaning they are a registered investment adviser along with being registered as a broker-dealer. In that case they may provide advice for a fee and collect a commission on certain product sales.[1]
- A registered investment adviser (RIA) is a firm that is an investment adviser in the United States, registered as such with the Securities and Exchange Commission (SEC) or a state's securities agency. The numerous references to RIAs within the Investment Advisers Act of 1940 popularized the term, which is closely associated with the term investment adviser. An investment adviser is defined by the Securities and Exchange Commission as an individual or a firm that is in the business of giving advice about securities. However, an RIA is the actual firm, while the employees of the firm are called Investment Adviser Representatives (IARs).
2023
- https://www.investopedia.com/terms/r/ria.asp
- QUOTE: A registered investment advisor (RIA) is a financial firm that advises clients on securities investments and may manage their investment portfolios. RIAs are registered with either the U.S. Securities and Exchange Commission (SEC) or state securities administrators.
RIAs and the people who work from them have fiduciary obligations to their clients, meaning that they have a fundamental duty to always and only provide investment advice that is in their client’s best interests.
- Key Takeaways
- Registered investment advisors (RIAs) are financial firms which manage the assets of individual and institutional investors.
- RIAs must register with the U.S. Securities and Exchange Commission (SEC) or a state regulatory agency, depending on the value of assets under the RIA’s management.
- RIAs typically earn their income through management fees, calculated as a percentage of a client’s assets under management (AUM) by the RIA.
- Unlike broker-dealers, RIAs have a fiduciary duty to put the best interests of the client first.
- Investment advisor representatives (IARs) are the financial professionals who work for RIAs.
- QUOTE: A registered investment advisor (RIA) is a financial firm that advises clients on securities investments and may manage their investment portfolios. RIAs are registered with either the U.S. Securities and Exchange Commission (SEC) or state securities administrators.