Registration
Registered Investment Advisor (RIA): Refers to an IA that is registered with the SEC or a states securities agency and typically provides investment advice to a Retail investor or registered Investment company such as a mutual fund, or exchange-traded fund. Registration does not signify that the SEC has passed on the merit of a particular IA. Regulation is fragmented in that some registered investment advisors are regulated by the individual states while others are regulated federally by the SEC.
Unregistered Investment Adviser: Refers to an IA that is not registered with the SEC or a states securities agency and typically provides investment advice to private pools of capital. Such an investment pool is commonly known as a Hedge Fund or a Private equity fund.
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