What is a Registered Investment Advisor (RIA)?

A Registered Investment Advisor (RIA) is defined by The Investment Advisers Act of 1940 as a person or firm that, for compensation, is engaged in the act of providing advice or making recommendations. An investment advisor has a fiduciary duty to his or her clients, which means that he or she has a fundamental obligation to provide non-conflicted¬†investment advice and always act in the clients’ best interests.

An advisor or RIA firm engaged in the investment advisory business is registered either with the Securities and Exchange Commission (SEC) or state securities authorities.