Registered Investment Advisors (RIA)

Investment professionals who are bound to act in your best interests
tl;drA registered investment advisor (RIA) is a professional who gives investment advice and manages your assets. They are legally required to act in your best interest. Using an RIA provides a level of protection, regulatory oversight, and alignment of interests.

What is a Registered Investment Advisor?

A registered investment advisor (RIA) is a professional who provides investment advice and manages assets on your behalf.

RIAs have a fiduciary duty to act in the best interests of their clients. This means that they are legally required to act in your best interests. RIAs cannot recommend investments that aren’t appropriate for your financial situation. They must tell you of any conflicts of interest, and they must keep records of their investment advice and provide you with statements that show the performance of your investments.

RIAs are also regulated by the Securities and Exchange Commission (SEC) or the state securities regulator where they are located.

How do RIAs make money?

RIAs are typically compensated through fees rather than commissions. This is important, because it means that they don’t get paid for selling you on certain investments. Because they are not incentivized to suggest certain products, that means they can focus on what’s best for you and your portfolio.

Why use as RIA?

There are several advantages to an RIA:

  • RIAs have a duty to work in your best interest, which gives you protection.
  • They are subject to regulatory oversight, which helps to ensure that they are providing high-quality investment advice.
  • RIAs are generally compensated through fees, which aligns their interests with yours.

Is Catch an RIA?