Registered Investment Advisor (RIA)
Our independence means your interests are placed above all else. RIA firms are registered with the Securities and Exchange Commission and are subject to the Investment Advisers Act of 1940, making RIAs some of the most highly regulated entities in the financial industry.
RIAs have a fiduciary duty to act in the best interest of their clients and use institutional custodians (like Charles Schwab) to hold and safeguard their clients’ investments. RIAs work with complex portfolios and address unique needs that require a highly customized level of investment expertise.
Unfortunately, not everyone providing financial advice is held to the same standard.
An investment adviser’s fiduciary duty under the Advisers Act comprises a duty of care and a duty of loyalty. This fiduciary duty requires an adviser “to adopt the [client's] goals, objectives, or ends.”
This means the adviser must, at all times, serve the best interest of its client and not subordinate its client’s interest to its own.
In other words, the investment adviser cannot place its own interests ahead of the interests of its client. This combination of care and loyalty obligations has been characterized as requiring the investment adviser to act in the “best interest” of its client at all times.
- U.S. Securities & Exchange Commission (SEC)
Commission Interpretation Regarding Standard of Conduct for Investment Advisers