Role of a Registered Investment Advisor
Engaging an independent fee-only RIA firm is a much different experience than investing with a brokerage or broker-dealer firm
Registered Investment Advisors (RIAs) are professional independent advisory firms that provide personalized financial advice to their clients, many of whom have complex financial needs.
- Because these advisors are independent, they are not tied to any particular family of funds or investment products.
- Registered Investment Advisers (RIAs) usually provide their services for an annual fee calculated as a percentage of assets under management. They are required to act as "fiduciaries".
- As fiduciaries, RIAs are held to the highest standard of care. This means they must put their clients' interests first. In other words, they must by law disclose all expenses and potential conflicts of interest.
- RIAs are registered with either the Securities and Exchange Commission or state securities regulators.