Registered Investment Advisor

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A registered investment advisor is an individual who registers with the Securities and Exchange Commission (SEC) and manages the assets of individuals and institutional investors. They receive management fees and do not receive commissions.[1]

An SEC registered adviser is a person who is registered under Section 203 of the Investment Company Act of 1940 (1940 Act) or who is not registered under the 1940 Act because he is excepted from the definition of investment adviser under Section 202(a)(11) of the 1940 Act.[2]

Guidelines According To The SEC

  • Investment Advisers Are Fiduciaries
  • Investment Advisers Must Have Compliance Programs
  • Investment Advisers Are Required to Prepare Certain Reports and to File Certain Reports with the SEC
  • Investment Advisers Must Provide Clients and Prospective Clients with a Written Disclosure Statement
  • Investment Advisers Must Have a Code of Ethics Governing Their Employees and Enforce Certain *Insider Trading Procedures
  • Investment Advisers are Required to Maintain Certain Books and Records
  • Investment Advisers Must Seek to Obtain the Best Price and Execution for Their Clients’ Securities Transactions[3]


Resources

References

  1. How To Be A Registered Investment Adviser. Securities Exam.com.
  2. Investment Adviser and Investment Adviser Representative. Securities OK.com.
  3. Information for Newly-Registered Investment Advisers. SEC.