Registered Investment Advisor (RIA)

A RIA is an individual or investment firm operating in the United States that assumes the responsibility of providing guidance to clients regarding investment decisions and portfolio allocation. To establish their qualifications and expertise, RIAs are required to register at the state level as well as with the SEC. Upholding a fiduciary duty, RIAs are legally obligated to act in the best interests of their clients. Typically, RIAs generate revenue by charging a percentage of the client’s AUM on an annual basis.