What are the principal differences between SEC Registered Investment Advisors and stockbrokers?
Registered Investment Advisors (RIA’s) are regulated by, and have filed a Form ADV with, the Securities and Exchange Commission. This form presents detailed information about the RIA, including past history of the advisor’s firm, the education and experience of the firm’s principals, investment management style, legal actions, if any, taken against the firm and its principals, fee structure and many other relevant pieces of information which an individual should consider when hiring an investment manager. RIA’s acknowledge their fiduciary status to their clients. Fiduciaries are held to a higher standard of professionalism than are non-fiduciaries. Most RIA’s are fee-based, rather than commission-based, and manage portfolios of investments on a discretionary basis. Client assets are typically held at an independent custodian such as a bank or brokerage firm. Investors who prefer to take full responsibility for their investment decisions might utilize a stockbroker directly, paying a co
Related Questions
- What differentiates Registered Investment Advisors from other financial service providers, such as stockbrokers or financial planners?
- Are we registered with the Securities and Exchange Commission (SEC) as Registered Investment Advisors?
- What are the principal differences between SEC Registered Investment Advisors and stockbrokers?
