Do I Need a Registered Investment Adviser?

May 22 2025 | Back to Blog List

We’ve previously explored what’s in a name when it comes to choosing your financial partner—comparing financial planners, money managers, and fiduciary advisers—but today we want to break down another important differentiator here at Cedar Point Capital Partners: our status as an independent Registered Investment Adviser (RIA).

RIA firms are more than just financial professionals with a fancy-sounding title—they’re fiduciaries held to the highest standard of client care, operating under a structure that prioritizes transparency, ethics, and your best interests. In a financial world filled with overlapping titles and compensation models, being an independent RIA is a clear and powerful signal of trust to investors. 

But is that what your situation calls for? We believe, in most cases, it does. Here’s why.

What Is an RIA?

A Registered Investment Adviser (RIA) is a person or firm that provides financial advice or manages investment portfolios in exchange for compensation. But unlike other titles in the financial space, “RIA” is defined and governed by a specific piece of federal legislation: the Investment Advisers Act of 1940.

This landmark law was enacted in the wake of the Great Depression to protect investors from deceptive practices and conflicts of interest by unscrupulous salespeople posing as trusted advisors. The act legally defines an “investment adviser” as someone who:

1. Is in the business of providing advice about securities,
2. Does so in exchange for compensation, and
3. Has a certain level of regularity and client engagement in providing this advice.

RIAs are required to register with either the U.S. Securities and Exchange Commission (SEC) or state securities regulators, depending on the amount of assets they manage. This registration process is extensive and formal, involving detailed disclosures and compliance infrastructure. It also subjects RIAs to ongoing scrutiny—ensuring they operate transparently and in the best interests of their clients.

The RIA Difference: Fiduciary Care

The single most important distinction of the RIA model is the fiduciary obligation. This legal duty requires RIAs to act solely in the best interests of their clients—unconditionally and without exception. Unlike broker-dealer firms, who are often held to a lesser “suitability” standard, RIAs must put your goals and interests ahead of their own compensation, while looking to mitigate or avoid any conflicts of interest all together.

For example:

• RIAs are generally prohibited from earning commissions on the sale of investment products.
• RIAs must disclose any potential conflicts and prove that recommendations serve their client’s best interest.
• RIAs often use independent investment custodians, removing the incentive to push proprietary products.

The independent RIA model fosters genuine trust: your adviser isn’t trying to sell you something—they’re working alongside you, focused on building a comprehensive plan tailored to your goals.

Dual Registration: One Hat or Two?

With all that said, know that not all RIAs are the same. Some firms are dual-registered—meaning they are both RIAs and broker-dealers. That dual status comes with trade-offs and potential conflicts.

Here’s a non-financial way to think about it:

• RIA-Only Firms (like Cedar Point Capital Partners): Imagine hiring a fitness trainer to help you get back into shape. You collaborate with them to create a workout plan that fits your specific lifestyle, needs, and goals. They don’t sell any exercise equipment or supplements—they are paid only to create the best possible fitness plan for your life.
• Dual-Registered Firms: Now imagine a trainer who also owns a fitness equipment and supplements store. They can still design a fitness plan for you, but they may also recommend using the equipment or supplements they sell—even if there are better or cheaper options elsewhere. They get paid a fee for the plan they create, as well as commissions for any equipment or supplements they sell you.

Dual-registered advisors wear different “hats” at different times. When they’re managing assets under their RIA structure, they must follow the fiduciary standard. But when selling products like annuities, mutual funds, or insurance under their broker-dealer role, the rules shift—they are only required to ensure the product is “suitable,” not necessarily in your best interest.

And while most dual-registered advisors work hard to serve clients well, the structure itself creates a gray area. You’re left wondering:

• Are they recommending this investment because it’s the best fit—or because there’s a commission involved?
• Is their advice shaped by my financial goals, or sales incentives from their parent company?

At Cedar Point Capital Partners, we prefer simplicity and transparency. That’s why we’ve chosen to operate solely under the independent RIA model. There are no commissions, no corporate sales goals, and no ambiguity—just financial advice you can trust, from investment management to tax and estate planning. We think that’s the level of service and care you deserve.

Other Benefits of Working with an RIA

While the fiduciary duty and transparent compensation structure are foundational advantages of working with an independent RIA, they’re far from the only reasons investors are increasingly turning to this model for professional advice. RIAs offer a host of practical, client-focused benefits that go well beyond the basics of investment portfolio management, including:

Comprehensive Financial Services

RIAs often provide services that extend far beyond investment advice. For example, here at Cedar Point Capital Partners, our teams are skilled in a range of financial disciplines—retirement planning, estate planning, charitable strategies, tax and insurance planning, education savings, and even specialized business and institutional financial services. This breadth ensures that every aspect of your financial picture is accounted for in a unified strategy.

Tailored Investment Strategies

No two investors are the same, and neither are their financial plans. RIAs often will specialize in designing investment strategies that are deeply personalized. Rather than relying on templates or pre-packaged solutions, a true fiduciary takes the time to understand your full financial life, including your risk tolerance, short- and long-term goals, lifestyle needs, and any unique circumstances or mandates that may impact your future. The result is a bespoke investment plan built around you—not just the markets.

Greater Communication & Technology Flexibility

Independent RIAs enjoy more freedom not only in how they communicate with clients but also in the technology they use to serve them. Without corporate gatekeepers or red tape, RIAs can publish timely blogs, share updates via podcasts or email, create educational videos, and respond directly to market events or client needs in real time. We feel that this agility fosters a stronger, more transparent relationship with clients.

Just as importantly, our independence means we can offer better technological solutions for managing your financial life. Larger firms often require advisors to use company-mandated platforms and systems—even if those tools aren’t great. The result is a more personalized, responsive, and effective client experience.

Our RIA Commitment

At Cedar Point Capital Partners, being an independent Registered Investment Adviser isn’t a trendy label—it’s a core part of our identity. It’s how we deliver clear, client-first advice, backed by rigorous credentials and a collaborative approach. We are proud to be:

• Fee-only fiduciaries—our only incentive is your success.
• Independent—we work with trusted custodians, not investment product pushers.
• Credentialed—our team holds individual certifications including AIF®, ChFC®, CIMA®, CFP®, RMA®, and CPWA®, as well as firm-wide fiduciary certifications like CEFEX.

We believe every investor deserves to work with a firm that acts in their best interest, and we are honored to uphold that standard every day.

If you're seeking an adviser who values clarity, accountability, and personalized planning—without the sales pressure—reach out today. Let’s talk about how we can help you navigate your financial journey with confidence.

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