Compliance Glossary

RIA Compliance

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RIA compliance is the legal and regulatory obligations that Registered Investment Advisors (RIAs) must follow. These obligations are set out in the Investment Advisers Act of 1940, and are enforced by the Securities and Exchange Commission (SEC) and state securities regulators.
The purpose of RIA compliance is to ensure that RIAs act in the best interests of their clients, and to protect investors. RIAs must establish policies and procedures to prevent legal violations, and to maintain professionalism and integrity.
Some examples of RIA compliance requirements include:
  • Fiduciary duties: RIAs must act in the best interests of their clients at all times.
  • Disclosure requirements: RIAs must comply with disclosure requirements.
  • Advertising: RIAs must comply with the Marketing Rule, which prohibits certain types of advertising.
  • Recordkeeping: RIAs must implement adequate record-keeping systems.
The SEC can penalize RIAs that don’t comply with the requirements, and state regulatory agencies can also impose sanctions. Individual advisors can be censured or barred from holding certain positions.

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