Get As A Registered Investment Advisor In The State Of Texas, I Am ...

The definition of investment adviser in Rule 116.1 refers to a “person or company who, for compensation, … provides investment advice… .” ingly, so long as you do not receive compensation for any investment advice you render from Texas or to a Texas resident, you need not register.

Essentially, a non-fiduciary can give out advice that “suits” their client's needs (even if it's not the best option available). A fiduciary, however, must give their clients the best options available depending on their needs and options – regardless of how it affects their own bottom line.

A registered investment advisor (RIA) is a financial firm that advises clients on securities investments and may manage their investment portfolios. RIAs are registered with either the U.S. Securities and Exchange Commission (SEC) or state securities administrators.

RIAs have a fiduciary duty to their clients. This means they're obligated to always act in your best financial interest and to offer the lowest-cost products that fit your needs. Non-RIA financial advisors, such as broker-dealers, may only have to offer advice that is suitable to clients.

FINRA is appointed by the SEC to oversee broker-dealer regulation but the SEC still holds the ultimate regulatory authority. Presently, FINRA does not regulate investment adviser firms as all registered investment adviser firms are currently regulated by the SEC or relevant state(s).

The SEC has said that an adviser has a duty to: Make reasonable investment recommendations independent of outside influences. Select broker-dealers based on their ability to provide the best execution of trades for accounts where the adviser has authority to select the broker-dealer.

Registered Investment Advisors are legally required to follow the fiduciary standard. All of their advisors, also called Investment Advisor Representatives, must always put their clients first and their loyalty is to the client above all else.

Investment advisors have a fiduciary duty to their clients, which was established by the Investment Advisers Act of 1940. This means they must act under their clients' best interests.