A person compensated for advising others about securities is an investment adviser and is regulated at federal or state level depending on assets under management.
Registration threshold. Advisers above a stated assets threshold register federally; smaller ones register with the states. Exemptions exist for advisers solely to private funds below a threshold, for venture capital fund advisers, and for foreign private advisers, each with reporting obligations.
Fiduciary duty. A duty of care and loyalty, including a duty to provide advice in the client’s best interest, to seek best execution, and to eliminate or fully disclose conflicts.
Form filings describing the business, fees, conflicts, disciplinary history and custody, delivered to clients and updated annually and on material change.
Compliance programme. Written policies reasonably designed to prevent violations, a chief compliance officer, and an annual review documented.
Custody rule requirements where the adviser has access to client assets, including surprise examinations and qualified custodian conditions.
Marketing rule governing advertisements, testimonials, endorsements and performance presentation, with specific requirements for net performance and for hypothetical results.
Books and records obligations with specified retention.
Examinations focused on conflicts, fees and expenses, custody, and cybersecurity.