Registered Investment Adviser

A registered investment adviser is an entity registered with the Securities and Exchange Commission (SEC). The registered investment adviser is a person or firm engaging in the business of providing financial advice regarding either the value of securities or investing in such securities. An entity managing $25 million or more must register with the SEC and become a registered investment adviser. An entity managing less than $25 million need not register with the SEC but remains under its regulatory control; such a registered investment adviser must register with the Securities Commission in the state in which they conduct business. To start a hedge fund, an entity must register as a registered investment adviser. A registered investment adviser receives fees but not commissions. Incentive fees may be charged by a registered investment adviser under certain conditions.