What Is a Registered Investment Advisor?
USNews, February 15, 2024 — “RIAs aren’t just for the wealthy anymore, and they have a fiduciary duty to put their clients’ interests first,” writes Marguerita Cheng, CFP® Pro in today’s article for USNews, sharing:
Trust is a cornerstone of financial planning, yet a recent Morning Consult poll revealed that only 36% of consumers trust investment and wealth management firms. Still, with the emerging reliance on artificial intelligence in financial decision-making, a CFP Board survey showed that 31% of consumers are comfortable acting on AI-generated financial advice without further verification.
However, it’s important to know who is managing your money and their approach to financial planning.
While a growing number of options for financial planning are available, registered investment advisors, or RIAs, are legally bound to prioritize what’s most beneficial for you. “RIAs are required to act as a fiduciary, which means they are legally required to act in the best interest of the client. This sets them apart from most traditional broker-dealers and ‘financial advisors,'” says Carman Kubanda, a certified financial planner, or CFP, professional with Innovative Wealth Building.
Here’s what you need to know about registered investment advisors and investment advisor representatives, or IARs, and how to choose an advisor who meets your needs: