Entity Types

Investment Advisory

Investment Advisory

An investment advisor is a firm that makes investment recommendations or conducts securities analysis in return for a fee, whether through direct management of clients' assets or by way of written publications. It must be registered with the Securities and Exchange Commission, as all the actions conducted by it are governed by the Investment Advisors Act of 1940.

  • An investment advisor often has discretionary authority over its clients’ assets and are required to uphold standards of fiduciary responsibility.
  • An investment advisor with sufficient assets to be registered with the Securities and Exchange Commission is known as a Registered investment advisor (RIA).
  • In the United States, investment advisors are required to register at the state level, and they also need to register with the SEC if they manage $100 million or more in client assets.