HAVE RIA

Registered investment advisers in the United States are bound by a fiduciary duty under the Investment Advisers Act of 1940. This legal standard requires the firm to serve its clients' best interests ahead of its own, providing advice free from material conflicts of interest. Broker-dealers, by contrast, typically operate under a less stringent suitability standard.

An RIA's Form ADV Part 1 and Part 2 filings are accessible through the SEC's Investment Adviser Public Disclosure (IAPD) website. Part 1 contains summary data on ownership, clients, employees, business practices, and any disciplinary events. Part 2, often written as a narrative brochure, details services, fees, and potential conflicts of interest.

Most independent RIAs custody client assets at third-party qualified custodians such as Charles Schwab, Fidelity, or Pershing. This separation of custody from advisory services provides a structural safeguard, ensuring the adviser does not directly hold client funds and reducing misappropriation risk.

The standard RIA revenue model is an asset-based fee, typically calculated as a percentage of assets under management and billed quarterly in arrears. Some firms also offer hourly consulting, flat retainer arrangements, or subscription-based planning fees. Commission income is rare for pure fiduciary RIAs unless they disclose a hybrid registration.

RIAs often serve individual retail investors, high-net-worth individuals, pension plans, trusts, estates, and charitable organizations. Some specialize in a particular niche such as corporate executives, medical professionals, or retirees, while smaller firms frequently adopt a generalist wealth-management practice.