Registered Investment Advisor - RIA


DEFINITION of 'Registered Investment Advisor - RIA'

An advisor or firm engaged in the investment advisory business and registered either with the Securities and Exchange Commission (SEC) or state securities authorities. A Registered Investment Advisor 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, making recommendations, issuing reports or furnishing analyses on securities, either directly or through publications." An investment advisor has a fiduciary duty to his or her clients, which means that he or she has a fundamental obligation to provide suitable investment advice and always act in the clients' best interests.

BREAKING DOWN 'Registered Investment Advisor - RIA'

In general, only larger advisors that have at least $25 million in assets under management or that provide advice to investment company clients are permitted to register with the SEC, while smaller advisors are required to register with state securities authorities.

Registration of an investment advisor is not meant to denote any form of recommendation or endorsement by the SEC or state securities regulators. It simply means that the investment advisor has fulfilled all the requirements for registration as an investment advisor.

In order to register with the SEC as an investment advisor, registrants must file Form ADV and keep it current by filing periodic amendments.

  1. Certified Consumer Debt Specialist ...

    A professional designation awarded by the Center for Financial ...
  2. Investment Advice

    Any recommendation or guidance that attempts to educate, inform ...
  3. Investing Fads

    Investing fads are current popular trends that relate to investments. ...
  4. Advisor

    1. The person or company responsible for making investments on ...
  5. Investment Advisor

    As defined by the Investment Advisors Act of 1940, any person ...
  6. ADV Form

    A required submission to the Securities and Exchange Commission ...
Related Articles
  1. Professionals

    The 6 Best Financial Advisors in Los Angeles

    Understand what makes a financial advisor a good choice. Learn about the top six best financial advisors in the greater Los Angeles area.
  2. Professionals

    The 6 Best Financial Advisors in Chicago

    Understand what makes a financial advisor good and why it may be difficult to find one. Learn about six of the best Chicago-based financial advisors.
  3. Professionals

    The 6 Best Financial Advisors in San Francisco

    Understand what makes a financial advisor good and what people should look out for. Learn about the top six financial advisors in San Francisco.
  4. Insurance

    Trending Toward Asset-Based Management

    Will charging fees instead of commission increase your client base?
  5. Options & Futures

    Should You Offer Alternative Investments?

    Find out what problems arise for financial representatives when they start to diversify their client offerings.
  6. Options & Futures

    Shopping For A Financial Advisor

    Finding your perfect advisor is as simple as shopping for a car. Read on to learn more.
  7. Professionals

    Meeting Your Fiduciary Responsibility

    Being a fiduciary comes with a certain level of responsibility. These four steps will reduce your liability when managing other people's money.
  8. Professionals

    Financial Efficiency: The Analyst's Guide To Time Management

    Being efficient on the job is the key to finding balance and avoiding burnout as a broker or advisor.
  9. Options & Futures

    The Alphabet Soup Of Financial Certifications

    We decode the meaning of the many letters that can follow the names of financial professionals.
  10. Options & Futures

    What Is A Registered Investment Advisor?

    Hoping for a career in the financial services industry? Working for an RIA may fit the bill.
  1. Do financial advisors have a base salary?

    Many financial advisors get paid a base salary plus any performance-based bonuses they may have earned that year. However, ... Read Full Answer >>
  2. Is a financial advisor allowed to pay a referral fee?

    A financial advisor is allowed to pay a referral fee to a third party for soliciting clients. However, the Securities and ... Read Full Answer >>
  3. How often do mutual funds report their holdings?

    The Securities and Exchange Commission (SEC) requires mutual funds to report complete lists of their holdings on a quarterly ... Read Full Answer >>
  4. Do financial advisors need to be approved by FINRA?

    The term "financial advisor" can refer to a couple of different roles. It most often refers to a broker-dealer or an investment ... Read Full Answer >>
  5. Do financial advisors work only in banks?

    While the majority of financial advisors work for financial institutions such as banks, a large proportion of them are self-employed ... Read Full Answer >>
  6. What are the disclosure requirements for a private placement?

    The U.S. Securities and Exchange Commission (SEC) has set forth disclosure requirements for private placements, including ... Read Full Answer >>

You May Also Like

Hot Definitions
  1. Gross Profit

    A company's total revenue (equivalent to total sales) minus the cost of goods sold. Gross profit is the profit a company ...
  2. Revenue

    The amount of money that a company actually receives during a specific period, including discounts and deductions for returned ...
  3. Normal Profit

    An economic condition occurring when the difference between a firm’s total revenue and total cost is equal to zero.
  4. Operating Cost

    Expenses associated with the maintenance and administration of a business on a day-to-day basis.
  5. Cost Of Funds

    The interest rate paid by financial institutions for the funds that they deploy in their business. The cost of funds is one ...
  6. Cost Accounting

    A type of accounting process that aims to capture a company's costs of production by assessing the input costs of each step ...
Trading Center
You are using adblocking software

Want access to all of Investopedia? Add us to your “whitelist”
so you'll never miss a feature!