Skip to content
Warren AI
Sign in
Financial Advisory Roles, Licensing & Client Protection Guide
1. Who's Who in Financial Advice: Roles Explained Simply/The Fee-Only Investment Adviser (RIA / IAR)
1. Who's Who in Financial Advice: Roles Explained Simply Illustration
Warren Academy Course SyllabusSyllabus Slides
Chapter Study Session

1. Who's Who in Financial Advice: Roles Explained Simply

The Fee-Only Investment Adviser (RIA / IAR)

01.What Is an RIA and an IAR?

A Registered Investment Adviser (RIA) is the advisory firm itself, registered with either the federal Securities and Exchange Commission (SEC) if it manages $100 million or more, or a state regulator like the Texas State Securities Board (TSSB) if it manages under $100 million. The human advisor working at that firm is legally called an Investment Adviser Representative (IAR).

1. Who's Who in Financial Advice: Roles Explained Simply — The Fee-Only Investment Adviser (RIA / IAR): Key Regulatory & Client Protection Summary
1. Who's Who in Financial Advice: Roles Explained Simply — The Fee-Only Investment Adviser (RIA / IAR): Key Regulatory & Client Protection Summary

02.How Fee-Only Advisors Are Paid

In a pure RIA model, the advisor is 'Fee-Only.' They receive zero sales commissions or product kickbacks from mutual fund or insurance companies. Instead, the client pays them directly in one of three transparent ways: • A percentage of Assets Under Management (AUM), such as 0.75% to 1.25% per year. • A flat annual or quarterly planning retainer. • An hourly consultation fee for a specific financial plan.

03.The 100% Fiduciary Commitment

Because an IAR is paid for ongoing advice under the Investment Advisers Act of 1940, they owe the client a continuous Fiduciary Duty—the highest standard of care in American law. Every recommendation and ongoing portfolio adjustment must put the client's financial interest first.