Why partner with a
REgistered investment Advisor

Fiduciary role

Under the Investment Advisers Act of 1940, registered investment advisors are held to a fiduciary standard of care that places clients interest before theirs (e.g. RIA cannot use clients assets for its own use). By law, required to always manage portfolios in the best interest of their clients. In the event that a conflict of interest should arise (e.g. compensation to RIA for a 3rd party investment product recommended to client) , RIAs are required to let you know (e.g. RIAs are also required to disclose products and services RIA receives through soft dollar arrangements). Additionally, RIAs are required to have a written code of ethics that governs their actions (e.g. omitting to state a material fact) and fully discloses how they are compensated (e.g. fee structure and fees). This code of ethics needs to be administered by RIAs CCO (Chief Compliance Officer).

FEE BASED COMPENSATION

Most RIAs work on flat fee or fee based on assets they manage on your behalf and are not compensated on commissions or transaction basis. This system is very easy to understand, fully transparent and disclosed to you in writing and provides additional incentive for your advisor to grow your assets over time.

Public records

RIAs are required to maintain public business records. Each RIA has to file with SEC or State a form ADV that describes how they do business and how they are compensated., it outlines the advisor services, background, fees, investment philosophy, investment strategy, ownership and information on the specific advisor providing financial advice. Before you hire someone to be your advisor, always ask for, and carefully read, both parts of Form ADV.

3rd party custodian

Most RIAs work with a qualified custodian typically a bank or a broker-dealer. What this means is that your assets are held by an Independent third party custodian like a Charles Schwab or a TD Ameritrade and you will receive regular monthly statements from the custodian detailing every transaction in your account, in addition to any reports that your RIA might share. RIAs that maintain custody of client’s assets, must obtain an annual audit by a third-party accounting firm to verify client assets and records.

Enterpreneurs

As, entrepreneurs most independent RIAs have a vested interest in building long term relationship with satisfied clients. They generally have a relationship with a vast network of professional who have expertise in a variety of areas – accounting, law, insurance, estate and inheritance.