What is a Registered Investment Adviser (RIA)?

A Registered Investment Adviser (RIA) is a person or firm that acts as a financial adviser and provides advice, guidance, and recommendations on investments to its clients. This type of adviser is registered with a state or federal agency, such as the Securities and Exchange Commission (SEC). In New York, RIAs must satisfy certain requirements to become registered. These include completing educational examinations, meeting continuing education requirements, and submitting a registration form and fee to the New York Department of Financial Services (NYDFS). In addition, RIAs must adhere to standards of professional conduct and must provide written disclosure statements to clients. RIAs are expected to act in the best interests of their clients and must disclose all fees, commissions, and other compensation they receive from third parties when recommending investments to clients. RIAs must also keep proper records of all transactions and provide accurate information about investments. RIAs provide a valuable service to people who need financial advice about investments. By registering with the appropriate regulatory authorities, RIAs are held to the highest standards of conduct and must act in the best interests of their clients. This helps to ensure that investors are protected from investment fraud and receive the best possible advice.

Related FAQs

What are the risks of investing in a company with a history of fraud?
What is the purpose of the Investment Advisers Act of 1940?
What is the difference between a broker-dealer and an investment adviser?
What is a securities fraud complaint?
What are the rules governing short selling?
What is the difference between a registered and unregistered security?
What documents should I review before investing?
What is the role of the SEC in combating investment fraud?
What is the difference between a Ponzi scheme and a legitimate investment?
What is the difference between an index fund and a mutual fund?

What is a Registered Investment Adviser (RIA)?

Related FAQs

Related Blog Posts