Prepared for Jordan K. | Delivered December 21, 2019
Registered Investment Advisers
To understand the RIA market, including how many RIAs there are in the United States, the top 10 RIA firms in the United States, state and federal regulations pertaining to RIAs, and how one can become an RIA.
Registered Investment Adviser Market
According to Statista, there are
12,993 registered investment advisors
in the United States.
Registered Investment Advisers serve almost
advisory clients and have about
in assets under management.
of RIAs collectively manage
of all reported assets under managment.
of RIAs are paid through asset-based fees based off of a percentage of their assets under management. About
are compensated through commission fees. The remainder are compensated through fixed-fees.
Top RIA Firms in the United States
top 10 RIA firms
in the United States based off of AUM are:
Financial Engines Advisors-
Hall Capital Partners-
Chevy Chase Trust Company-
Kayne Anderson Rudnick Investment Management-
Moneta Group Investment Advisors, LLC-
Jasper Ridge Partners-
Silvercrest Asset Management Group-
Pensionmark Financial Group, Llc-
How to Become an RIA
Persons interested in becoming a
registered investment advisor
must pass the Series 65 (Uniform Investment Advisor Law) exam, file with the SEC or state, create an account with the Investment Adviser Registration Depository (IARD), and file Form ADV and the U4 forms with either the SEC or states.
Series 65 exam
is administered by the Financial Industry Regulatory Authority (FINRA). In order to pass, candidates must receive a score of 72.3% on the 130 question multiple choice exam.
Firms or individuals who act as an investment adviser on behalf of an investment company and any firm or individual with an AUM of more than $100 million must
register with the SEC
. Firms with an AUM under $100 million must register with their state.
After passing the Series 65 exam and registering with the SEC or state, RIAs must open an account with the Investment Adviser Registration Depository (IARD) in order to receive a
Finally, RIAs must file
Form ADV and the U4 form
s with either the SEC or states. This is the official application used to become recognized as an RIA.
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