This episode explores the history of registered investment advisors (RIAs) and how the RIA industry has evolved over the years. It starts with the early 20th century when investment advice was given informally and without much regulation. The pivotal moment came in 1940 with the passing of the Investment Advisers Act, which required RIAs to register with the SEC and introduced the fiduciary standard. The rise of the RIA model in the 1950s and 60s, the challenges and opportunities in the 80s and 90s, the disruption caused by robo advisors, and the impact of the 2008 financial crisis are also discussed. The episode concludes with the current state of the RIA industry, with RIAs known for their fiduciary commitment and personalized approach to financial advice.
00:00 The Birth of Registered Investment Advisors: The Investment Advisers Act of 1940
02:05 The Rise of the RIA Model: Personalized Advice and Professional Designations
03:04 Challenges and Opportunities: The 80s and 90s
04:30 Disruption and Regulation: Robo Advisors and the 2008 Financial Crisis
05:57 The Current State of the RIA Industry: Fiduciary Commitment and Holistic Financial Planning
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