A Registered Investment Advisor (RIA) is a firm that provides personalized investment advice and ongoing portfolio management for a fee. Advisors within these firms often serve as long-term financial partners, helping individuals and families navigate complex decisions related to investments, retirement, and overall financial planning. Their role typically extends beyond asset management to coordinated guidance across a client’s broader financial picture.
What services do RIAs provide?
The scope of services offered by an RIA can vary, but most firms take a comprehensive approach to wealth management. This often includes constructing and managing investment portfolios, developing financial and retirement plans, and coordinating strategies related to taxes and estate planning. Some advisors also bring specialized expertise in areas such as equity compensation, generational wealth transfer, or complex tax situations, depending on client needs.
Because services are defined through a formal agreement, clients have a clear understanding of what to expect from the relationship, including the level of ongoing support and guidance.
How are RIAs paid?
Compensation for advisors who work at RIAs is typically structured to promote transparency. Many advisors charge a fee based on a percentage of assets under management, while others may use flat fees, hourly rates, or project-based pricing depending on the engagement.
A key differentiator is that many RIAs operate as fiduciaries, meaning that the wealth advisors are legally obligated to act in their clients’ best interests. Advisors at fee-only RIAs are compensated directly by clients rather than through commissions, which can help minimize potential conflicts of interest.1 Understanding how an advisor is paid is an essential step in evaluating whether their incentives align with your financial goals.
Who regulates RIAs?
Regulatory oversight of RIAs is determined primarily by the amount of assets they manage. The U.S. Securities and Exchange Commission generally regulates firms overseeing $100 million or more in client assets, while state securities regulators typically govern smaller firms. Certain exceptions allow some firms to register with the SEC even if they do not meet the asset threshold, particularly for digital advisory platforms.1
Regardless of the regulator, RIAs are required to provide disclosures that outline their services, fees, and potential conflicts. Documents such as Form CRS (Customer Relationship Summary) are designed to help investors compare advisory firms and make more informed decisions.
RIAs vs. other financial advisors
The financial services industry uses a wide range of titles, many of which are not regulated. Designations, however, can provide a clearer signal of expertise. Here are three of the most common.
By contrast, the RIA designation signals that the firm or professional is registered with a governing body and subject to ongoing compliance requirements. With an RIA firm, clients typically work with licensed professionals authorized to provide advice and manage portfolios on behalf of the firm.
How to choose the right RIA
Selecting the right RIA and advisor requires careful evaluation. Investors should verify an advisor’s credentials and registration status using publicly available databases, such as those maintained by the Financial Industry Regulatory Authority (FINRA). It is also important to understand how the advisor is compensated, what services are included, and whether the advisor operates under a fiduciary standard.
Equally important is finding an advisor whose expertise aligns with your specific financial needs and whose approach fits your preferences. Taking the time to conduct due diligence can help establish a more effective and trustworthy advisory relationship.
What makes Mercer Advisors different?
Mercer Global Advisors, Inc. has been named the #1 RIA firm by Barron’s for two years running (2025-2024). Learn why.
Mercer Advisors has taken the sophisticated, time-tested family office approach used by many ultra-high-net-worth families and made it accessible to more investors. Designed to help amplify and simplify your financial life, our model centers on a unified in-house team of planners, investment professionals, accountants, and estate specialists who collaborate to design and execute your financial plan.
Each client is paired with a dedicated Wealth Advisor whose focus is on serving their needs, not on prospecting for new business. This relationship is supported by an institutional-grade portfolio tailored specifically to the client’s objectives and managed by a team of more than 100 investment professionals.
To learn how Mercer Advisors connects the dots of your financial life by unifying financial planning, investment management, tax, estate, insurance, and more, let’s talk.
1 “Form CRS: Customer Relationship Summary.” U.S. Securities and Exchange Commission, May 2020.
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Mercer Global Advisors, Inc was ranked #1 for non-mega RIA firms. Advisers who wish to be ranked fill out a 100+ question survey about their practice. Barron’s verifies that data with regulatory databases and then Barron’s applies their rankings formula to the data to generate a ranking. The formula features three major categories of calculations: (1) Assets (2) Revenue (3) Quality of practice. In each of those categories Barron’s does multiple sub calculations including asset type, growth, client retention, technology spending, succession planning, diversity of their teams, charitable and philanthropic work and compliance records. No fee was paid for participation in the ranking, however, Mercer Advisors has paid a fee to Barron’s to use the ranking in marketing.
Please Note: Limitations. Neither rankings and/or recognitions by unaffiliated rating services, publications, media, or other organizations, nor the achievement of any professional designation, certification, degree, or license, membership in any professional organization, or any amount of prior experience or success, should be construed by a client or prospective client as a guarantee that they will experience a certain level of results if Mercer Advisors or its investment professionals are engaged, or continues to be engaged, to provide investment advisory services. A fee was not paid by either Mercer Advisors or its investment professionals to receive the award or ranking. The award or ranking is based upon specific criteria and methodology. No ranking or recognition should be construed as an endorsement by any past or current client of Mercer Advisors or its investment professionals.
