Glossary
Key terms for understanding registered investment advisers and SEC filings.
- Fiduciary
- A fiduciary is a person or firm legally obligated to act in another party's best interest. SEC-registered investment advisers are fiduciaries, meaning they must put clients' interests ahead of their own.
- Assets under management (AUM)
- Assets under management is the total market value of the investments a firm manages on behalf of its clients. Advisers report regulatory AUM on Form ADV, and it is often used as a rough measure of a firm's size.
- Form ADV
- Form ADV is the disclosure document that investment advisers file with the SEC and state regulators. It covers the firm's business, fees, conflicts of interest, and disciplinary history, and it is publicly available.
- Registered investment adviser (RIA)
- A registered investment adviser is a firm registered with the SEC or a state securities regulator to provide investment advice. RIAs are held to a fiduciary standard.
- CRD number
- A CRD (Central Registration Depository) number is a unique identifier assigned to investment adviser firms and professionals. You can use it to look up a firm's full record on the SEC IAPD site.
- Fee-only
- A fee-only adviser is compensated solely by client fees — such as a percentage of assets, a flat fee, or hourly billing — and does not earn commissions from selling financial products.