A person or firm that is compensated for providing investment advisory services. Contrary to a broker who is transaction based, RIAs are typically compensated based off a percentage of assets under management, and have a fiduciary responsibility to their clients. RIAs compete with mutual funds, hedge funds, and wire house firms for clients.
RIA firms house a wide array of jobs, and include research analysts, traders, portfolio managers, and client service professionals. CPAs and attorneys are increasingly being hired by RIAs, as they can provide specialized financial and legal advice. RIAs are licensed through the Securities and Exchange Commission (SEC), and hold either a Series 65 or a Series 7 and Series 66 together.