A Registered Investment Advisor (RIA) refers to an IA that is registered with the SEC or a state's securities agency and typically provides investment advice to a retail investor or registeredinvestment company such as a mutual fund, or exchange-traded fund. Registration does not signify that the SEC has passed on the merit of a particular IA. Regulation is fragmented in that some registered investment advisors are regulated by the individual states, while others are regulated federally by the SEC.

An Unregistered Investment Adviser refers to an IA that is not registered with the SEC or a state's securities agency and typically provides investment advice to private pools of capital. Such an investment pool is commonly known as a hedge fund or a private equity fund.