What is a Registered Investment Adviser (RIA)?
A Registered Investment Adviser, or RIA, is a firm that is registered with the U.S. Securities and Exchange Commission or a state securities regulator to give investment advice for a fee. The legal framework is the Investment Advisers Act of 1940. Under that Act, an RIA owes its clients a fiduciary duty — the duty to put the client's interests ahead of its own. This is the same duty that applies to a trustee. RIAs file a public form called Form ADV with the SEC, which discloses ownership, services, fees, conflicts, and any disciplinary events. Anyone can read the form for free at adviserinfo.sec.gov. The people who give advice on behalf of an RIA are called Investment Adviser Representatives, or IARs. Each one has a unique CRD number on file with the SEC. RIAs are not the same as broker-dealers, which are regulated under a different law.
SEC vs. state registration
Whether an RIA is registered with the SEC or with a state depends mostly on size:
- SEC-registered: Firms with $100M or more in assets under management. Also dual-registered firms and firms operating in 15+ states.
- State-registered: Firms with under $100M in assets, registered with the state securities regulator where they do business.
Either way, the duty to clients is the same. The difference is which regulator does the audits and enforcement.
What the fiduciary duty actually requires
The Investment Advisers Act, plus SEC interpretive guidance, requires an RIA to:
- Act with care, loyalty, and good faith.
- Provide advice that is in the client's best interest.
- Seek best execution on trades.
- Disclose all material conflicts of interest.
- Avoid conflicts that cannot be disclosed and managed.
A broker-dealer follows Regulation Best Interest, a 2020 rule that is similar but weaker. Reg BI does not impose an ongoing fiduciary duty.
How to verify a firm is an RIA
Search adviserinfo.sec.gov by firm name, advisor name, or CRD number. Open the firm's Form ADV Part 1 to see registration status and Part 2A for the brochure. Form CRS is the two-page client summary every RIA must give new retail clients before signing them up. The same site shows all disciplinary events, so you can read both the firm's own description and the regulator's record at once.
Why RIAs matter for clients
The Investment Advisers Act creates a clear paper trail. Every RIA discloses how it gets paid, who its key people are, and what conflicts exist. The disclosure is in plain English by SEC rule, not industry jargon. That is the deepest difference between an RIA and a non-RIA firm — the records you can read for yourself.