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.
Independent Financial Advisors Gaining Market Share
Jefferson National
Jefferson National Life Insurance Company has been in business since 1937. The company is active in the
Financial Advisor Views on Annuities Appear Tightly Related to Business Models
A recent study from Cerulli Associates indicates that registered investment advisors (RIA) are more than hesitant to recommend annuities to their clients.
The report surveys and compares the views of various forms of financial advisors. Not surprisingly, financial advisors’ product views are tightly related to the financial incentives that support their business models. Consider, for example, the following:
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Only 7% of insurance company representatives would be...
Battle Lines Being Drawn Over Fiduciary Status of Financial Advisors
There is a key point of distinction that exists in the world of financial advice and vast majority of people are unaware that it exists.
The defining issue is whether a...