What Exactly Is an RIA and What Does It Do?

Confusion abounds, and the industry as a whole has not done a great job defining itself. 

But before we define a Registered Investment Advisor (RIA), we first need to look at the distinction between a broker and an advisor. These terms are used interchangeably, but they should not be and sit at the very crux of what is an RIA. Let's get into it. 

Broker vs. Advisor: Why the Difference Matters More Than You Think 

If you’ve ever felt unsure about the title “financial advisor,” you’re not alone. It’s one of the most misused terms in our industry, and the difference between a broker and a true advisor can have a major impact on your financial future. 

The Big Divide: Fiduciary vs. Suitability 

At SteelPeak, we operate as fiduciaries. That means we are legally and ethically bound to act in your best interest. Not just sometimes. Always. 

Most of the industry operates under a different set of rules. Roughly 85 percent of so-called “advisors” are actually brokers or sales representatives. And while they might offer guidance, they’re only required to meet what’s called the suitability standard. In plain terms, the investments they recommend just have to be suitable for your situation, not necessarily best. 

That opens the door to conflicts of interest, like commissions, sales incentives, or pressure to push certain products. 

Why Fiduciary Matters 

Choosing a fiduciary means choosing transparency, alignment, and advocacy. When your advisor is a fiduciary, they’re not just managing your money. They’re making decisions with your long-term well-being in mind. That includes: 

• Prioritizing low-cost, high-value strategies 
• Disclosing any potential conflicts 
• Avoiding hidden fees or unnecessary products 

You wouldn’t hire a doctor paid by the drug company. Why settle for less with your financial life? 

RIA vs. Financial Planner: What’s the Difference? 

You may also hear the terms RIA and financial planner used interchangeably. But they’re not the same. 

• Registered Investment Advisors (RIAs) focus on investment management and growing the wealth of high-net-worth individuals. 
• Financial planners focus on long-term strategy. They help with retirement, college savings, estate planning, and tax optimization. 

RIAs are built to simplify complexity. To help you make smarter decisions with more clarity and less noise. 

What You Get with an RIA 

Working with a Registered Investment Advisor gives you: 

• Fiduciary care that puts your interests first 
• Transparent fees, often a percentage of assets or a flat rate 
• Tailored advice based on your needs, goals, and life stage 
• Regulatory oversight from the SEC and state agencies 

You’ll always know what you’re paying, and why. No sales pitches. No surprises. 

What Sets SteelPeak Wealth Apart 

SteelPeak operates with one clear priority: you. Independence means we are not tied to a parent company or pressured to sell specific products. We act as advocates, not salespeople. 

Here’s what that looks like in practice: 

• Portfolios managed in-house by our investment team, creating alignment and direct accountability 
• Customized financial plans built around your specific goals, not a one-size-fits-all approach 
• Clear, ongoing communication through reviews, timely updates, and educational insights 

The Bottom Line 

At the end of the day, the question isn’t “what’s your title?” It’s “who are you accountable to?” 

With SteelPeak, the answer is simple: you. 

We’re here to help you move forward with clarity, purpose, and peace of mind. Whether you’re investing, planning, or navigating change, our team stands with you every step of the way.