What is the difference between a broker-dealer and an investment adviser?

The difference between a broker-dealer and an investment adviser is a key point of investment fraud law in Washington. A broker-dealer is a firm that buys and sells securities for their own account, as well as for customers. Broker-dealers are regulated by the Securities and Exchange Commission (SEC) and by the Financial Industry Regulatory Authority (FINRA). Broker-dealers are required to provide customers with certain disclosures, such as information about the risks of trading in particular securities, to ensure informed decision-making. An investment adviser, on the other hand, is a person or firm that provides advice to clients about investing in securities. Investment advisers are regulated by the SEC and state securities regulators. Unlike broker-dealers, investment advisers are subject to the Investment Advisers Act of 1940 and must provide disclosures about their services, including information about fees and any potential conflicts of interest. Investment advisers must also register with the SEC and comply with certain other regulations.

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What is the difference between a broker-dealer and an investment adviser?

What is the difference between a broker-dealer and an investment adviser?

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