Should Traditional Broker-Dealers Consider an RIA Platform?

A Registered Investment Advisor (RIA) is a person or firm who advises high-net-worth individuals on investments and manages their portfolios. RIAs have a fiduciary duty to their clients, which means they have a fundamental obligation to provide investment advice that always acts in their clients' best interests and report any conflicts of interest. RIA’s are regulated and mandated to register either with the US Securities and Exchange Commission (SEC) or with state securities administrators, based on the size and AUM of the firm. RIA’s are typically compensated through a fee-only model determined by an annual percentage of client assets held under management, as opposed to a commission-based model leveraged by traditional broker-dealers.