F.A.Q

What is an RIA?

RIA stands for Registered Investment Advisor and it is an investment firm that is “Independent”. By being independent, an RIA is not obligated to try to sell the products of their firm/ employer. Thus, an RIA has the freedom to find the best products to meet your needs.

What services are offered by an RIA?

Regal Investment Advisor Representatives offer services such as: financial planning, asset investment management, retirement planning, college planning, estate planning, and much more. We provide you with reviews of your investment strategy, help with budgeting, and even advice on how to save for your vacation home or use your employee benefits more effectively.

What is a fiduciary duty?

Investment advisers owe a fiduciary duty to their clients. As such, an investment adviser stands in a special relationship of trust and confidence with its clients. As a fiduciary, an investment adviser has an affirmative duty of care, loyalty, honesty, and good faith to act in the best interests of its clients. The parameters of an investment advisers fiduciary duty depend on the scope of the advisory relationship and generally include the following duties:

  1. (1) to place the interests of clients first at all times.
  2. (2) to have a reasonable basis for its investment advice.
  3. (3) to seek best execution for client securities transactions where the adviser directs such transactions.
  4. (4) to make investment decisions consistent with any mutually agreed upon client objectives, strategies, policies, guidelines, and restrictions.
  5. (5) to treat clients fairly.
  6. (6) to make full and fair disclosure to clients of all material facts about the advisory relationship, particularly regarding conflicts of interest.
  7. (7) to respect the confidentiality of client information.

This fiduciary duty differs from the suitability obligations that govern brokers/dealers and Registered Representatives.

What kind of investments are available with an RIA?

As a representative of an RIA, the investment universe is virtually unlimited; it is not limited to just one company or mutual fund group. We have the freedom to find the investment products, or use an investment strategy, that is the best fit for each client.

How are RIAs compensated for their services?

If your investments are managed on an ongoing basis, then compensation is based on a sliding fee scale based on Assets Under Management (AUM). RIA firms are very transparent about fees and must disclose all of their sources of compensation.

What is a Broker-Dealer?

A broker-dealer is a firm in the business of buying and selling securities, operating as both a broker and a dealer, depending on the transaction.

What functions does a broker-dealer fulfill?

Broker-dealers fulfill several important functions in the financial industry; these include providing investment advice to customers, supplying liquidity through market-making activities, facilitating trading activities, publishing investment research and raising capital for companies.