What is the American SEC RIA license?

SEC RIA (registered investment consultant) license of the US Securities and Exchange Commission is a registered investment consultant in the United States. As a company specializing in investment consulting, it needs to apply for a license, which is regulated by the US Securities and Exchange Commission (SEC) or state securities departments. As the highest organ of American securities industry, SEC is an independent federal agency, which protects investors by supervising trading activities. A government committee established by the U.S. Congress supervises the securities market and protects the interests of investors.

In the United States, only institutions or individuals with RIA licenses are qualified to provide investors with investment service advice on securities products, and provide investment reports on a regular basis, and at the same time, they can charge corresponding management fees and undertake entrusted responsibilities to customers. The scope of securities investment advice is quite extensive in the United States, including asset management, account management and wealth management service banks in the entire securities market.

Overview of American SEC RIA license plate

The SEC's approval of RIA is quite strict, and fund managers need to pass the investment consultant exam of Series65 (CFA and PFS licenses can be exempted). On this basis, it still needs to manage more than $654.38+billion in assets before it can be registered with the SEC (the assets registered by asset management companies in this state range from $25 million to $654.38+billion). First of all, we should maintain integrity with customers, make information disclosure completely open, and provide appropriate investment advice selflessly. Secondly, the management of assets needs to go through a third-party organization, and the use of each sum needs to be notified and recognized by customers.

In addition, the SEC will regularly supervise and inspect RIA. Mainly focus on the risk supervision of portfolio valuation, performance and asset audit; To supervise the legality of providing effective compliance policies and procedures; And publish the inspection results. It is through so many strict audits and supervision that overseas investment institutions can obtain RIA licenses. Therefore, for domestic investment institutions that have obtained this qualification, the investment professionalism and reliability of the platform are obvious. Under the influence of globalization, more investors tend to entrust assets to professional overseas investment institutions for management. Having an RIA license under the supervision of the US Securities and Exchange Commission (SEC) is the basic guarantee that investors can trust when choosing overseas investment institutions.