What is a Registered Investment Adviser (RIA)?

A Registered Investment Adviser (RIA) is a person or business entity that is registered with either the Securities and Exchange Commission (SEC) or the state securities regulator in Virginia. An RIA is a professional that provides financial advice and investment services, such as developing investment plans, researching investments, and providing ongoing advice to clients. The RIA must be registered under the Investment Advisers Act of 1940 and must adhere to certain fiduciary standards. In Virginia, the state securities regulator is the Virginia State Corporation Commission (SCC). To become a RIA in Virginia, you must register with the SCC and file a form ADV, which is an application outlining your experience and qualifications. You must also pass a criminal background check and complete an educational course. RIAs have a fiduciary responsibility to their clients, which means that they must always act in their clients’ best interests when providing investment advice. They must also have certain policies in place to ensure the best outcomes for their clients, such as the ethical standards of conduct that govern their business. Additionally, RIAs must comply with the rules and regulations of the SEC and the SCC to protect the interests of their clients. In Virginia, RIAs are required to register with the SCC and should abide by the fiduciary standards established by the SEC and the SCC. It is important for investors to research an RIA before investing and to understand the applicable laws. This will help protect them from becoming victims of investment fraud.

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What is a Registered Investment Adviser (RIA)?

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