Registered Investment
Advisor Obligations

  • Registered Investment Advisors (RIAs) must register with either the SEC or the State and adhere to certain practices and procedures when providing advice to their clients. The RIA company needs to file form ADV 1 & 2 with the state or SEC providing in-depth details of their operations, fees, investment strategies, risks and other important disclosures.
  • Form ADV 2 can also serve as a brochure to be provided to all clients as a description of how the RIA works and is compensated for their services. In addition, all of the RIA advisors need to pass certain licensing requirements (such as the Series 65 or having the CFP® or CFA® accreditations). 
  • An RIA is also required to keep good records of client’s advisory contract(s), the privacy policy statement and the Code of Ethics under which they operate. All the above needs to be revisited and updated every year with the State or SEC making any necessary changes to the ADV forms.