RIA (Registered Investment Advisor) Definition
Written by True Tamplin, BSc, CEPF®
Updated on June 21, 2021
Registered Investment Advisor (RIA) Definition
Typically, the compensation is around 1% of the assets under management.
They are required to disclose any possible conflicts of interest, and in all other circumstances put the needs of their clients above their own.
Registration with the SEC
An RIA must either register with one of two organizations depending on how much money they oversee.
Typically an advisor managing $25 million or more in assets must register with the Securities and Exchange Commission (SEC).
Advisors managing less may register with state securities administrators.
How Much Do RIA’s Charge?
Typically an RIA will charge a 1% fee of the AUM, but for clients that have very high value assets, they may negotiate a rate below 1%.
Some RIA’s may instead charge a flat fee or an hourly rate for their services.
If an advisor wants to use this business model they must obtain a Series 65 license.