RIAs are legally bound to serve the financial interests of their clients. Broker-dealers have more flexibility and their investments are bound by the “suitability” standard. Brokers register with the Financial Industry Regulatory Authority (FINRA), while RIAs register through the Securities and Exchange Commission (SEC).

Related Terms

  • Time Value of Money (TVM)

  • Technical Analysis

  • Securities Exchange

  • Return on Investment (ROI)

  • Required Minimum Distributions (RMD)

  • Registered Investment Advisor (RIA)

  • Rate of Return (RoR)

  • Probate Court

  • Power of Attorney (POA)

  • Portfolio Manager

  • Mutual Fund

  • Liquidity

  • Health Care Proxy

  • Fundamental Analysis

  • Financial Advisor

  • Fiduciary

  • Executor

  • Exchange-Traded Fund (ETF)

  • Estate

  • Custodian

  • Cost Basis

  • Certified Plan Fiduciary Advisor (CPFA)

  • Broker

  • Beneficiary