A registered investment adviser is a firm registered with the SEC or with state securities regulators to provide investment advice. RIAs are held to a fiduciary standard and must file a Form ADV disclosing services, fees, conflicts of interest, and disciplinary history. Registration does not imply a particular level of skill.
Form ADV Part 2 is the document worth reading before engaging any adviser. It sets out fee structure, conflicts, and disciplinary history in a standardized format, which makes firms genuinely comparable.
Whether a firm registers with the SEC or with a state generally depends on assets under management, with state registration applying below the federal threshold. Either way, advisory services may only be offered where the firm is registered or exempt.
This definition is provided for educational purposes. It is general information, not investment, tax, or legal advice, and it does not account for any individual circumstances.