An independent Registered Investment Advisor (RIA) refers to a financial firm that is registered with the Securities and Exchange Commission (SEC) or state securities authorities (Washington State Department of Financial Institutions) and operates independently from large financial institutions. RIAs are typically fiduciaries, meaning they are legally obligated to act in the best interests of their clients.

Key characteristics of an independent RIA include:

• Independence: Independent RIAs operate autonomously and are not affiliated with broker-dealers or larger financial institutions. This independence allows them to make unbiased recommendations based on the client's best interests.
• Fiduciary Duty: Independent RIAs are held to a fiduciary standard, which means they are obligated to prioritize their clients' interests above their own. This standard requires them to provide advice that is in the best interest of their clients and to disclose any potential conflicts of interest.
• Registration: RIAs with assets under management above a certain threshold are required to register with the SEC, while those below the threshold register with state securities authorities. Registration is a regulatory requirement that helps ensure transparency and accountability.
• Fee-Based Compensation: Many independent RIAs operate on a fee-based compensation model. This means they charge fees based on a percentage of assets under management or a flat fee for their services. This fee-based structure is intended to align the advisor's interests with those of the client.
• Comprehensive Financial Planning: Independent RIAs often provide comprehensive financial planning services, addressing various aspects of their clients' financial lives, including investment management, retirement planning, tax planning, estate planning, and more.
• Client-Centric Approach: Independent RIAs typically emphasize a client-centric approach, tailoring their services to meet the unique needs and goals of each individual client. This contrasts with a more product-focused approach often associated with some larger financial institutions.