You could be receiving advice on how to invest your IRA from an IAR (Investment Advisory Representative) who works at a RIA (Registered Investment Advisor). How is that for confusing?
Here at The Price Group, we take pride in explaining topics in terms that clients can understand. Because of this, we often avoid acronyms as they are typically confusing to someone who is not in our business. With that being said, we wanted to revisit why we have chosen to provide advice through a Registered Investment Advisor (RIA) firm for our advisory clients.
Over the past two decades, the investment landscape drastically changed along with how financial advice is provided. Enter the RIA, or Registered Investment Advisor. An RIA is a firm that has a fiduciary duty to put their clients’ best interests in front of their own. RIAs are by no means a new concept, thanks in large part to the Investment Advisers Act of 1940. However, in recent years, the shift to the RIA structure can be attributed to advisors leaving banks/brokerage firms and moving to an independent model that is free of bank ownership conflicts.
What does this mean to our advisory clients? A few key themes stick out:
Fiduciary Standards | RIAs are legally obligated to serve the best interests of its clients and cannot put its own interests ahead of the interests of its clients – this minimizes the potential for conflicts of interest and impartiality.
Transparency | If a conflict of interest is not able to be completely eliminated, RIAs are required to disclose them to the client. In addition, RIAs are typically compensated with one fee, based on assets under management, in contrast to earning commissions from the purchase or sale of securities. This simplified fee structure helps clients know what they are paying for.
Autonomy | Not only does this structure provide advisors with the freedom to choose who they want to work with, it gives them the freedom to choose how they want to work with clients. With no ties to certain products or services, it allows advisors to choose from a wide variety of solutions to ensure the right fit for any given strategy.
Here at The Price Group, we are proud to be held to the highest standards and strive to provide only the most suitable guidance and advice to our clients.
About the Author
Matt Price serves as a Partner and Managing Director for The Price Group of Steward Partners. He resides in Houston with his wife, Emily, their four children and "Fisher" the family golden retriever. Matt studied at the University of Pennsylvania – Wharton School of Business for his Certified Investment Management Analyst (CIMA®) designation after receiving his undergraduate degree from the University of Tennessee - Knoxville. Over the past 12 years, Matt has helped families make high quality, common sense decisions regarding their wealth and their legacy. Matt firmly believes everyone needs a wealth coach!
Content Is Nothing Without Context
Are you looking for a weekly financial market commentary that provides context? Click here to sign up for our weekly newsletter. We are helping make the complex simple.
Steward Partners Investment Solutions and Steward Partners Investment Advisors shall assume the role of a fiduciary only when expressly stated in a written agreement, and when all necessary and proper agreements, contracts, or legal documents are duly executed and in place between the parties involved. Our fiduciary duties shall be bound by the terms and conditions specified within the said agreement and shall not extend beyond the scope defined therein.
Steward Partners Investment Advisors offers a wide array and advisory services to its clients, each of which may create a different type of relationship with different obligations to you. Please consult with your Wealth Manager to understand these differences. Please visit us at https://adviserinfo.sec.gov/Firm/283004 or consult with your Wealth Manager to understand these differences.
Securities and investment advisory services offered through Steward Partners Investment Solutions, LLC, registered broker/dealer, member FINRA/SIPC, and SEC registered investment adviser. Investment Advisory Services may also be offered through Steward Partners Investment Advisory, LLC, an SEC registered investment adviser. Steward Partners Investment Solutions, LLC, Steward Partners Investment Advisory, LLC, and Steward Partners Global Advisory, LLC are affiliates and separately operated. The Price Group is a team at Steward Partners.
AdTrax 4766787.87 Exp 9/25