RIA stands for Registered Investment Advisor, which is a financial firm or individual that advises clients on securities investments and may manage their investment portfolios. RIAs are registered with either the U.S. Securities and Exchange Commission (SEC) or state securities administrators, and they have a fiduciary obligation to their clients, meaning that they have a fundamental duty to always provide investment advice that is in their client’s best interests.
RIAs come in various sizes, from giant financial planning firms servicing tens of thousands of clients to single advisors operating through their own RIA. They often work with high-net-worth clients and institutional investors to manage their assets. RIAs offer financial advice to clients, including advice related to investment management, and may execute trades on their behalf or help them with completing transactions.
RIAs are held to a fiduciary standard, meaning that their clients best interests will always guide their decision-making.
