What is a regulatory exam in the context of a Registered Investment Advisor (“RIA”)?

Definition: With respect to RIAs, this is when the RIA’s regulator (either SEC or state) performs an exam of the RIA to, among other things, make sure they are following the required rules and regulations of RIAs. An RIA will typically receive an exam every few years.

When used in an RIA context: “The SEC notified the RIA they will be performing a regulatory exam of the RIA starting in June.”

See also: Episode #28, Episode #8