As you develop your investment portfolio, partnering with someone with the experience and expertise to help you reach your financial goals is helpful. An RIA or Registered Investment Advisor in Minneapolis, MN can provide guidance and support as you navigate the world of investing. Here are three good reasons to work with an RIA.
First, an RIA must be registered with the Securities and Exchange Commission or the state(s) in which they do business. The SEC is an independent federal government regulatory agency that promotes investor protection and oversees organizations and firms’ practices to promote transparency and adherence to securities laws. RIAs must adhere to the code of ethics as mandated by the SEC.
Second, an RIA firm has a fiduciary duty to its clients. A fiduciary duty means the firm is legally bound to act in the client’s best interests. They must disclose potential conflicts of interest and put their client’s needs ahead of their own. Not all types of financial professionals must adhere to a fiduciary standard. Some advisors are brokers registered with FINRA and bound only to a suitability standard.
Third, an RIA is independent of brokerage firms and banks. They do not sell products or receive commissions based on the advice they provide. They can offer advice without the conflicts of interest found in brokerage firms that depend on selling products. An RIA must disclose any potential conflicts of interest in its Form ADV. Brokerage firms under FINRA are not obligated to disclose their conflicts of interest.
When it comes to investing, there are benefits in working with a professional who is required to act in your best interests and adhere to ethical standards of conduct. A Registered Investment Advisor in Minneapolis, MN can provide you with the guidance and support to help you reach your goals.
