What is an RIA?

RIAs are regulated under the Investment Advisers Act and owe a continuing fiduciary duty. Broker-dealers are regulated under a different framework and, outside of Regulation Best Interest obligations, historically operated under a suitability standard.

In practice the difference shows up in how each is paid. RIAs are typically paid a fee by the client — a percentage of assets, a retainer or an hourly rate.

• RIA: fiduciary duty, fee paid by the client, files Form ADV

• Broker-dealer: transaction-based compensation, files Form CRS, supervised by FINRA

• Dually registered: both hats, so ask which one they are wearing for each recommendation

Every registered firm files Form ADV Parts 1 and 2. Part 2 is the plain-English brochure: fee schedule, services, conflicts of interest and disciplinary history.

• Look up the firm and the individual on the SEC's public adviser search

• Read Form ADV Part 2 — especially the fee schedule and the conflicts section

• Confirm assets are held at a third-party custodian, never by the adviser directly

• Ask whether the firm is fee-only, and get the answer in writing

• Check who actually manages your account day to day, not just who sold you the relationship

What does RIA stand for?

Registered Investment Adviser — a firm or person registered with the SEC or a state regulator to provide investment advice for compensation.

Are all RIAs fiduciaries?

Yes. Registration under the Investment Advisers Act carries a fiduciary duty to act in the client's best interest and to disclose material conflicts.

What is the difference between an RIA and a CFP?

How do I check if an adviser is registered?

Search the firm or individual in the SEC's public investment adviser database, then read their Form ADV Part 2 brochure for fees, services and disciplinary history.

How much do RIAs charge?

Most charge 0.50%–1.25% of assets under management a year, with the percentage falling as balances rise. Flat retainers and hourly rates are increasingly common.