The Registered Investment Adviser (RIA): What You Need To Know

Regulated directly by the Securities and Exchange Commission (SEC), a registered investment adviser (or RIA) is defined as a firm that advises or manages the wealth of high net-worth individuals or institutions. What makes these groups unique, is their fiduciary obligation to act in the best interest of their clients. RIAs make up a broad range of groups throughout the financial landscape including wealth advisers, hedge funds, retail investment advisories, private equity firms and various other entities that manage capital on behalf of others. Some multi-family offices may also be registered investment advisers, though this registration depends on the circumstances of the group. The RIA vertical continues to demonstrate steady growth and development, with an estimated 35,000+ entities and more than 405,000+ registered reps in operation today.

Main Services Offered by RIAs:

Like family offices, registered investment advisers offer a wide array of wealth management services to its clients. Some of their main services almost always include wealth management, asset allocation, generational planning, retirement planning, third party manager selection services and tax planning. Additionally, you will see entities offering insurance planning, market timing services and even educational workshops and events. 

Quick Hitters:

→ Regulated directly by the SEC, RIAs advise and manage the wealth of high net-worth individuals and institutions
→ All RIAs are fiduciary organizations, meaning they have a legal obligation to act in the best interest of their client at all times
→ RIAs must disclose any and all fees (once registered with the SEC) 
→ Primarily compensated by fees charged to clients 
→ There are an estimated 35,000+ RIA entities and more than 405,000+ registered reps active today

For more on RIAs, click here.

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