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Investment Advisers (RIAs) are financial professionals or firms that manage investments and provide advice to clients and are required by law to register with the U.S. Securities and Exchange Commission (SEC) if they manage assets above a certain threshold. Registered advisers must comply with stringent regulatory standards under the Investment Advisers Act of 1940, including fiduciary duties to act in the best interests of their clients, providing full disclosure of conflicts of interest, maintaining proper records, and adhering to SEC rules on client communications and advertising. They undergo regular examinations by the SEC to ensure compliance with these standards. In contrast, Exempt Reporting Advisers (ERAs) are a subset of investment advisers exempt from full SEC registration but still required to file reports with the SEC, such as a truncated version of Form ADV. ERAs often include advisers who solely manage private funds and have assets under management below the SEC registration threshold, allowing them to avoid the comprehensive regulatory requirements applicable to SEC-registered RIAs while still providing basic disclosure to the SEC and complying with anti-fraud provisions of federal securities laws.

You can find out how to get in touch with your state securities regulator to obtain information about additional requirements with individual states. You can locate state-registered investment advisers through the website of the North American Securities Administrators Association, Inc. (NASAA).