Registered Investment Advisor

Registered Investment Advisors are often referred to as RIAs. Registered Investment Advisors are financial professional who are registered either with the Securities and Exchange Commission (SEC) or the state in which their business is located. RIAs with more than $25 million in client assets register with the SEC, and those with less than $25 million are registered with their state. Registered Investment Advisors are subject to a fiduciary standard. This fiduciary role means that RIAs are legally obligated to represent their clients’ best interests. RIAs provide investment advice through something called an advisory account. Advisory accounts and the fiduciary standard make the role and responsibilities of a RIA very different from that of brokers who work through brokerage accounts and are subject to suitability standards. RIAs must also provide clients with a Form ADV which describes how they do business, reveals any potential conflicts of interest, and clearly describes how they are compensated. RIAs charge a fee that is a percentage of assets rather than a commission for managing investments. Fees can range from less than 1 percent to more than 2 percent of assets under management. RIAs may also offer investment-related financial planning services.

Types of Financial Advisors

Fee Only Advisor

Independent Financial Planners on Par with Full Service Brokers

The number of mass affluent investors using an independent financial planner is roughly equivalent to the number using a full service broker . A recent survey of 1,498 households with assets between $100,000 and $1,000,000 reveals that 22% use an independent financial planner as their advisor. The number of mass affluent households using full service brokers is also 22%. The number of households using registered investment advisors (RIA) is 6%--a decrease of 4% from the previous survey in...

NAPFA Provides Consumers with Quality Control while Maintaining Flexibility for Financial Advisors

NAPFA is the National Association of Personal Financial Advisors.

NAPFA membership consists of financial advisors who provide comprehensive...


The Garrett Network's Fee-Only Approach Creates Natural Partnerships Between Clients and Financial Advisors

Sheryl Garrett is the founder of the Garrett Planning Network.

The Garrett Network consists of approximately 300 financial advisors who provide services on a fee-only basis and act as fiduciaries.

Read on to understand how and why the Garrett Network seeks to make objective, competent...

New York Life Expanding Variable Annuity Offerings

New York Life is developing new variable annuity products that will be distributed through independent broker -dealers and registered investment advisors. The company is active in the variable annuity market, but to this point they have distributed the variable products through their own career agents. Key themes with the new product include transparency, low cost and simpicity. Source: Investment News Full Story
Key Phrases: